A decrease in real GDP would affect the U.S. economy by:
a. cutting tax revenues and raising government expenditures.
b. cutting government expenditures and raising tax revenues.
c. raising both tax revenues and government expenditures.
d. cutting both government expenditures and tax revenues.
Question 2
The Monetarists advocate the monetary rule in order to stabilize the business cycle which states that the money supply should be decreased by a constant rate year after year.
a. True
b. False
Indicate whether the statement is true or false
This chart illustrates the four quadrants in which we can place the relationships between the state
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