In the monetarist view, if there is an increase in money growth then
a. the money supply and inflation will grow proportionally, with no effect on output and employment.
b. the money supply grows faster than the inflation rate, with unfavorable effects on output and employment.
c. the money supply grows faster than the inflation rate, leading to an increase in output and employment in the short-run.
d. there will be no effect on output, employment, or inflation, in the long-run.
e. both c and d.
C
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The demand for health care in industrially advanced economies is:
A. highly elastic with respect to both price and income. B. highly inelastic with respect to both price and income. C. highly elastic with respect to income but highly inelastic with respect to price. D. about unit elasticity with respect to income and relatively inelastic with respect to price.
Refer to the information given. If the price level unexpectedly declines from 100 to 75, the level of real output in the short run will:
Suppose the full employment level of real output (Q) for a hypothetical economy is $500, the
price level (P) initially is 100, and prices and wages are flexible both upward and downward.
Use the following short-run aggregate supply schedules to answer the question.
A. rise from $500 to $560.
B. fall from $500 to $440.
C. fall from $560 to $500.
D. rise from $440 to $500.