Author Question: The flatter is the IS curve, A) the more effective is monetary policy. B) the less effective is ... (Read 35 times)

altibaby · **on:** Jun 30, 2018

The flatter is the IS curve,

A) the more effective is monetary policy.
B) the less effective is monetary policy.
C) the effectiveness of monetary policy does not change.
D) a given change in the money supply will have a smaller effect on output.

Question 2

The new classical interpretation of the economy suggests that

A) output is always above the natural level.
B) output is always below the natural level.
C) output is always equal to the natural level.
D) recessions will not occur.