Multiple Choice
Monetarists
A) believe that fiscal policy is the most important aspect of the economy.
B) believe that output is determined by technology shocks.
C) emphasize the role of money in the economy.
D) suggest that the government determine all production decisions.
Correct Answer:
Verified
Correct Answer:
Verified
Q9: Increases in unanticipated inflation will impact employment
Q10: Suppose the public expects a 4 percent
Q11: Suppose that the expected inflation rate is
Q12: Suppose that union leaders negotiate a significant
Q13: If the growth rate of money changes,
Q15: If the inflation rate unexpectedly increases, it
Q16: Define "money illusion" and explain its cause.
Q17: Velocity of money =<br>A) (nominal GDP) x
Q18: All else equal, expectations of higher inflation
Q19: A tight-money policy in the short run