The mainstream view of macro instability is that
A) changes in the money supply directly cause changes in aggregate demand and thus cause changes in real GDP.
B) changes in investment shift the aggregate demand curve and thus cause changes in real GDP.
C) bursts of innovation put the economy on an unsustainable growth path, eventually producing recession.
D) changes in technology and resource availability are the two main sources of fluctuations of real GDP.
Correct Answer:
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Q1: Economist Milton Friedman is most closely associated
Q4: The velocity of money is equal to
A)1/MPS.
B)1/reserve
Q5: The velocity of money is equal to
A)1/MPS.
B)nominal
Q6: Answer the question on the basis of
Q9: Monetarists believe that
A)prices and wages are inflexible
Q10: If the amount of money in circulation
Q10: Which of the following is a component
Q12: If M is $400, P is $4,
Q14: In the equation of exchange, V indicates
Q24: Monetarists say that the relationship between the
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