Multiple Choice
The Monetarist model differs from the classical model in that
A) changes in aggregate demand,not aggregate supply,drive changes in output.
B) changes in the money supply drive changes in inflation inflation.
C) changes in aggregate supply,not aggregate demand,drive changes in ouput.
D) money demand is not always stable.
E) none of the above.
Correct Answer:
Verified
Correct Answer:
Verified
Q7: Targeting money growth will lead to stable
Q8: Monetarists believe in all of the following
Q9: Compare and contrast the monetarist and Keynesian
Q10: According to the monetarist view,the<br>A)IS schedule is
Q11: The difference between the monetarist and Keynesian
Q13: Keynes and many of his contemporaries believed
Q14: The monetarists would expect a tax cut
Q15: During the Great Depression,the money supply fell
Q16: A liquidity trap is<br>A)the vertical portion of
Q17: In the modern Keynesian model,velocity<br>A)varies positively with