The classical and Monetarist models agree that
a. the use of fiscal policy can stabilize output.
b. money demand is inherently unstable.
c. the public has perfect information about the price level.
d. increases in the money supply are the primary cause of inflation.
e. none of the above
D
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Categories of U.S. consumer spending, ranked from largest to smallest, are
a. housing, food & beverages, education & communication, and transportation. b. education & communication, housing, food & beverages, and transportation. c. food & beverages, housing, transportation, and medical care. d. housing, transportation, food & beverages, and medical care.
The theory that real shocks to the economy are the primary cause of business cycles is
A. Hamiltonian theory. B. Keynesian theory. C. real business cycle theory. D. monetarism.