The activist response to the monetarist platform says that
A) private spending may show some stability, but monetary or fiscal policy designed to stabilize it will just make things worse.
B) private spending is stable partly because consumption spending is based on permanent income.
C) even if prices are not completely flexible in the short-run, given time there is enough flexibility for the system to return to the natural level of real GDP.
D) None of the above.
D
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A circular flow model shows the interrelationship between the ________ market and the ________ markets
A) household; goods B) household; factor C) business; household D) expenditure; income E) goods; factor
Which of the following is an important ingredient of efficient economic organization?
a. high marginal tax rates b. competitive markets c. rapid increases in the money supply d. imposition of high tariffs that will protect domestic producers from the ravages of foreign competition