« previous next »

Author Question: What are the defining features of monetarist macroeconomics and what policies do monetarist ... (Read 107 times)

09madisonrousseau09

  • Hero Member
  • *****
  • Posts: 559
on: Jun 29, 2018
What are the defining features of monetarist macroeconomics and what policies do monetarist macroeconomists recommend?
 
  What will be an ideal response?

Question 2

Refer to Table 2-12. If the two countries specialize and trade, who should export sailboats?
 
  A) There is no basis for trade between the two countries.
  B) Guatemala
  C) They should both be importing sailboats.
  D) Honduras


amanda_14

  • Sr. Member
  • ****
  • Posts: 342
Reply #1 on: Jun 29, 2018
Answer to Question 1

Monetarists believe that the economy is self-regulating and will typically operate at full employment if monetary policy is not erratic and the money growth rate is kept steady. The major source of business cycle fluctuations are similar to the Keynesian view, that is, changes in aggregate demand combined with a sticky money wage rate. However, according to monetarists, the changes in aggregate demand are the result of fluctuations in the growth rate of money caused by the Federal Reserve. Monetarists assert that the proper government policies are low taxes, to avoid the disincentive effects stressed by classical macroeconomists, and steady monetary growth.

Answer to Question 2

D


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

IgA antibodies protect body surfaces exposed to outside foreign substances. IgG antibodies are found in all body fluids. IgM antibodies are the first type of antibody made in response to an infection. IgE antibody levels are often high in people with allergies. IgD antibodies are found in tissues lining the abdomen and chest.

Did you know?

Addicts to opiates often avoid treatment because they are afraid of withdrawal. Though unpleasant, with proper management, withdrawal is rarely fatal and passes relatively quickly.

Did you know?

The most dangerous mercury compound, dimethyl mercury, is so toxic that even a few microliters spilled on the skin can cause death. Mercury has been shown to accumulate in higher amounts in the following types of fish than other types: swordfish, shark, mackerel, tilefish, crab, and tuna.

Did you know?

Calcitonin is a naturally occurring hormone. In women who are at least 5 years beyond menopause, it slows bone loss and increases spinal bone density.

Did you know?

In 1886, William Bates reported on the discovery of a substance produced by the adrenal gland that turned out to be epinephrine (adrenaline). In 1904, this drug was first artificially synthesized by Friedrich Stolz.

Retrograde pyelogram. A contrast medium is injected into the ureter using a cystoscope, and the X-ra Retrograde pyelogram. A contrast medium is injected into the ureter using a cystoscope, and the X-ra
Relations of Skull to Surface features Relations of Skull to Surface features
Surface Features on Titan Surface Features on Titan
Key features of Australopithecus afarensis. Key features of Australopithecus afarensis.
Key Features of Australopithecus africanus. Key Features of Australopithecus africanus.
Typical features of expression vectors for E. coli Typical features of expression vectors for E. coli
Video: Deafness Culture

For a complete list of videos, visit our video library