The Monetarist transmission mechanism through which monetary policy affects the price level, real GDP, and employment depends on the:
a. indirect impact of changes on the interest rate.
b. indirect impact of changes on profit expectations.
c. direct impact of changes in fiscal policy on aggregate demand.
d. direct impact of changes in the money supply on aggregate demand.
Question 2
Frictional unemployment refers to:
a. unemployment related to the ups and downs of the business cycle.
b. workers who are between jobs.
c. people who spend relatively long periods out of work.
d. people who are out of work and have no job skills.
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