The monetarists
a. focus on the role of money as being the most important variable impacting aggregate demand.
b. recommend a monetary rule which calls for a stable rate of growth in the money supply of approximately 3 to 5 percent annually.
c. recommend government balance its budget.
d. All of the above.
d. All of the above.
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Suppose that Spain has a comparative advantage in hats and Portugal has a comparative advantage in doormats. Under a system of free trade, each country specializes and then trades with the other. If the price increases from four hats per doormat to five hats per doormat,
a. people in Portugal will not want to buy as many hats b. Spain no longer has a comparative advantage in hats c. Portugal no longer has a comparative advantage in doormats d. some of the gains from trade shift to Portugal e. some of the gains from trade shift to Spain
The aggregate supply curve slopes upward because as price rises the quantity of output supplied rises
a. True b. False Indicate whether the statement is true or false