Advocates of discretionary policy make these criticisms of the economy's "self-correcting" mechanism:
a. it is slow
b. it is not very reliable
c. it works only when supplemented by automatic stabilizers
d. All of the above are correct.
e. a and b only are correct.
e
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The equation of exchange ________
A) states that the quantity of money multiplied by velocity must equal nominal income in a given year B) describes a relationship that is true by definition C) shows that real GDP must equal real money balances times the number of times a dollar turns over in a year D) all of the above E) none of the above
Which view of the causes of the Great Depression emphasizes the decline in the money supply which caused aggregate demand for goods and services to shrink, leading businesses to cut production and employment?
(a) The Monetarists' (b) The Keynesians' (c) The Austrians' (d) The International View