Exam 4: Keynesian Analysis, Monetary Approach, and Classical Model

Suppose that the money stock is $10 billion, each dollar generates $ 5worth of spending, and the NAIRU is 7%. According to the quantity theory of what is nominal GDP (income)

If the aggregate supply curve is perfectly elastic as in the Keynesian model at low level of national incomes, as increase in AD will cause an increase in

what is the foundation of monetarism?

When there are vacancies in the job-market, but also high levels of unemployment, then we could say that this unemployment is?

According to monetarists, money supply constitutes

In the Keynesian range of the SRAS, if AD shift to the right, then

Why does a temporary decrease in government purchases decrease labour supply in the classical model?

According to the basic classical model, an increase in the money supply will cause

The purpose of Keynesian analysis is to explain what to determines the

Which of the following is true with respect to the monetary approach to the balance of payments?

Attempts to force inflation below no-accelerating inflation rate of unemployment (NAIRU) will cause:

Demand-side unemployment is partly caused by:

According to monetary approach a revaluation of a nation's currency