Classical economists
a. argued that the money supply determined aggregate demand.
b. regarded monetary policy as unimportant since the quantity of money does not determine the price level.
c. believed that the quantity of money influences interest rates and real wages.
d. believed that prices would increase more than proportionate to an increase in the money supply.
Question 2
According to Ricardian equivalence, a long-run impact on the economy occurs when the government ________.
A) lowers taxes
B) issues more government bonds
C) increases spending on capital goods
D) raises taxes
The small-scale distribution of different tree species in a Douglas-fir forest is determined by both
Mason Williams - Classical Gas
In 2008, the U.S. economy suffered a gaping wound as several trillion dollars were ripped out of it.
The population of Asia increases rapidly, the demand for food and water is also growing
The Economics of Money, Banking and Financial Markets, Business School Edition
Blood Supply to the Lungs