Which of the following models imply that a decrease in the money supply reduces unemployment temporarily but not permanently?
a. both the long-run Phillips curve and the aggregate supply and aggregate demand model.
b. the aggregate demand and aggregate supply model, but not the long-run Phillips curve.
c. the long-run Phillips curve, but not the aggregate demand and aggregate supply model.
d. neither the long-run Phillips curve nor the aggregate supply and aggregate demand model.
a
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A positive economic statement is one that
A) can be refuted. B) is free of the ceteris paribus assumption. C) is based on a value judgment. D) asserts something about the role of moral behavior in building a strong economy.
The equation of exchange states that the money value of GDP must be equal to the product of the money stock times its velocity
a. True b. False Indicate whether the statement is true or false