Since classical economists and monetarists believe that the economy operates at full employment, real GDP, that is, along the vertical segment of aggregate supply:
a. any increase in the money supply can only end up raising the price level.
b. any increase in the money supply can only end up lowering the price level.
c. any decrease in the money supply can only end up raising the price level.
d. changes in the money supply will not affect the price level.
e. any increase in the money supply will cause both nominal and real GDP to increase.
Question 2
Eric lost his job because a recession caused his employer's sales to fall. This is an example of:
a. involuntary unemployment.
b. frictional unemployment.
c. structural unemployment.
d. cyclical unemployment.
Size varies greatly among horse breeds, as with this full-sized horse and a miniature horse.
Homer: In the Western classical tradition Homer is the author of the Iliad and the Odyssey, and is ...
Half Full or Half Empty
Many diesel fuel additives increase the cetane rating which results in improved fuel economy.
Economic activity as viewed by environment and ecological economists
economy manegment