In the Monetarist model,
a. monetary policy and not fiscal policy is the prime factor in aggregate demand movements.
b. money demand is more volatile than in the Keynesian model.
c. expectations are correct on average.
d. aggregate supply is not the primary source of business cycles.
e. both a and b.
A
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If other things are constant, the longer the average unemployed worker searches before accepting a job
A) the lower will be the measured unemployment rate. B) the higher will be the measured unemployment rate. C) the lower will be the natural unemployment rate. D) none of the above.
If a consumer's budget line between meat and potatoes has a vertical axis intercept at 100 pounds of meat and a horizontal axis intercept at 100 pounds of potatoes
a. demand must be inelastic b. the consumer's budget must equal $100 c. both meat and potatoes must be priced at $1 per pound d. the price of a pound of meat must equal the price of a pound of potatoes e. the opportunity cost of meat in terms of potatoes cannot be determined