The Monetarist model differs from the classical model in that
a. changes in aggregate demand, not aggregate supply, drive changes in output.
b. changes in the money supply drive changes in inflation inflation.
c. changes in aggregate supply, not aggregate demand, drive changes in ouput.
d. money demand is not always stable.
e. none of the above.
A
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All of the following statements are examples of positive economic analysis except
A) as the unemployment rate decreases, fewer people are willing to relocate to find jobs. B) as the economy improves, more workers from other countries are migrating to the United States. C) exports from the United States should be increased to offset the growing number of imports into the United States. D) the U.S. economy is growing at a slower rate than the economy of Brazil.
Which of the following statements about natural monopolies is true?
A) Natural monopolies are only found in the markets for natural resources (like crude oil and coal). B) For natural monopolies, marginal cost is always below average cost. C) For natural monopolies, average cost is always increasing. D) Natural monopolies cannot be regulated.