A criticism of the monetarist autonomous spending variable is that
A) some types of autonomous spending do not affect aggregate demand.
B) some types of autonomous spending affect aggregate demand before the spending occurs. Some types of autonomous spending affect aggregate demand when they occur.
C) some types of autonomous spending affect aggregate demand only long after they occur.
D) Keynesians do not think that autonomous spending affects aggregate demand.
B
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In the market for used cars, if there is asymmetric information yet all cars sell for the same price
A) there is an efficiency problem and there are equity implications. B) there is no efficiency problem, but there are equity implications. C) buyers of lemons win at the expense of buyers of good cars. D) there is no efficiency problem and there are no equity implications.
A major complication with fiscal policy to control aggregate demand is the
a. inability to agree on macroeconomic goals. b. accuracy of modern forecasting models. c. inability to change aggregate demand with fiscal tools. d. constantly changing investment and net exports because of other events.