Some researchers argue that the overall standard of living increased during the 1920s. In general, holding constant all other factors that might impact it, economists are careful about connecting an increase in the standard of living to
(a) increases in the amount of labor used in production processes.
(b) new inventions being made in research laboratories.
(c) increases in the output of goods and services per worker.
(d) the discovery of new sources of gold and silver.
Question 2
Monetarists believe in all of the following except
a. steady growth in inflation will yield stable output.
b. steady growth in the money supply will yield stable output.
c. fluctuations in the money supply are responsible for business cycles.
d. the Fed should not be involved in trying to stabilize the economy.
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