According to Keynes, the money demand function
a. did not change as the return on other assets changed.
b. changes with output.
c. shifts with changes in the public confidence in the economy.
d. both b and c.
e. all of the above.
Question 2
According to supply-siders
a. there exists a temporary tradeoff between higher inflation and higher output growth.
b. there exists a permanent tradeoff between higher inflation and higher output growth.
c. there exists no tradeoff between higher inflation and higher output growth.
d. there exists a temporary tradeoff between higher inflation and higher output growth during periods of low inflation only.
Two modes of evolutionary change.
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Graph the function by hand & label key points on graph: