Which of the following best describes the policy ineffectiveness proposition?
A) Monetary policy cannot change real GDP in a regular or predictable way.
B) Policymakers can be effective in changing real GDP only if people's expectations are correct.
C) Monetary policy can change real GDP only if the Fed pursues a consistent, stable growth rate of the real money supply.
D) Fiscal policy is totally ineffective in changing real GDP in both the short run and the long run.
A
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The Keynesian model of aggregate demand includes:
I. government purchases and taxes. II. consumer spending and investment spending. III. exports plus imports. a. I b. I and II c. II and III d. I, II, and III
Hyperinflation is defined as an inflation rate
A) that doubles each year. B) that increases rapidly in one year and decreases rapidly the next year. C) that exceeds 50 percent per month. D) that is moderately high but anticipated.