Most monetarists favor:
a. frequent changes in the growth rate of the money supply to avoid inflation.
b. placing the Federal Reserve under the Treasury.
c. a steady, gradual shrinkage of the money supply.
d. a constant increase in the money supply year after year equal to the potential annual growth rate in real GDP.
Question 2
The economy is considered to be at full employment when:
a. the actual rate of unemployment is less than the natural rate.
b. the leading economic indicators are unchanged for two consecutive quarters.
c. structural unemployment is zero.
d. frictional plus structural unemployment is less than the natural rate.
e. the rate of cyclical unemployment is zero.
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