Most economists believe the principle of monetary neutrality is
a. relevant to both the short and long run.
b. irrelevant to both the short and long run.
c. mostly relevant to the short run.
d. mostly relevant to the long run.
d
You might also like to view...
Suppose the U.S. government has an annual budget of about $4 trillion. Does the U.S. government face the problem of scarcity?
A. No, a government with $4 trillion in spending faces no real constraints. B. No, scarcity does not apply to governments. C. Yes, resources are limited even for the U.S. government. D. Yes, although the U.S. government can easily obtain more resources. E. Uncertain, economic theory has no answer to this question.
Table 8-1 Item Amount (billions) Personal Consumption Expenditures 600 Depreciation 50 Wages 800 Indirect Business Taxes 10 Rental Income 25 Gross Private Domestic Investment 150 Corporate Profits 75 Net Exports 5 Government Purchases of Goods and Services 200 Government Transfer Payments 50 According to the data in Table 8-1, the value of NNP is
A. 900 B. 805 C. 750 D. 705