Multiple Choice
If restrictive monetary policy leads to a lower price level but leaves real output, employment, and real interest rates unchanged, then
A) real money balances must be unchanged
B) it must have been accompanied by expansionary fiscal policy
C) it must have been accompanied by restrictive fiscal policy
D) money is said to be neutral
E) both A) and D)
Correct Answer:

Verified
Correct Answer:
Verified
Q5: If factor markets were perfectly competitive, then
Q6: In the classical supply curve case, monetary
Q7: Which of the following was NOT true
Q8: Given the Keynesian AS-curve, expansionary monetary policy
Q9: The Keynesian AS-curve implies that<br>A)the economy is
Q11: To maintain a fixed level of aggregate
Q12: The natural rate of unemployment is<br>A)always zero<br>B)the
Q13: The AS-curve is horizontal or very flat
Q14: The AD-curve has a negative slope since<br>A)firms
Q15: A shift of the AD-curve to the