Which of the following statements is (are) correct? There is agreement between the Keynesians and monetarists that
a. an increase in aggregate demand will increase both output and price in the short run.
b. there is a trade-off between inflation and unemployment in the short run.
c. in the long run, when the expected price level also has time to adjust, output will not be affected by changes in aggregate demand.
d. All of the above
e. None of the above
Question 2
The population theory of Thomas Malthus
(a) would have predicted the changes in per output in this country in the
19th century and up to 1910.
(b) would lead you to expect a powerful surge in physical output as
the immigration poured in.
(c) would not have predicted the positive trend increase in per capita
output and income in 18601910.
(d) does not apply to any of the above.
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