"Ricardian equivalence" is the proposition that it does not matter whether government expenditure is financed by taxes or by issuing debt

Suppose that for several periods the aggregate demand and supply curves have been intersecting at the same point, and at full employment. Then the central bank increases money growth as the result of an unannounced policy change

Under New Classical assumptions the likely short-run result is __________ output and __________ price level. A) rising; a rising B) rising; an unchanged C) unchanged; a rising D) unchanged; an unchanged

Capital and labor are distinct from technology since ________

A) technology is exogenous B) technology is rival in its use C) capital and labor are physical things D) technology is a physical thing