Author Question: Since classical economists and monetarists believe that the economy operates at full employment, ... (Read 172 times)

kellyjaisingh

  • Hero Member
  • *****
  • Posts: 540
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.



jsm54321

  • Sr. Member
  • ****
  • Posts: 328
Answer to Question 1

a

Answer to Question 2

d



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question


 

Did you know?

A headache when you wake up in the morning is indicative of sinusitis. Other symptoms of sinusitis can include fever, weakness, tiredness, a cough that may be more severe at night, and a runny nose or nasal congestion.

Did you know?

In 1844, Charles Goodyear obtained the first patent for a rubber condom.

Did you know?

About 80% of major fungal systemic infections are due to Candida albicans. Another form, Candida peritonitis, occurs most often in postoperative patients. A rare disease, Candida meningitis, may follow leukemia, kidney transplant, other immunosuppressed factors, or when suffering from Candida septicemia.

Did you know?

In most cases, kidneys can recover from almost complete loss of function, such as in acute kidney (renal) failure.

Did you know?

To prove that stomach ulcers were caused by bacteria and not by stress, a researcher consumed an entire laboratory beaker full of bacterial culture. After this, he did indeed develop stomach ulcers, and won the Nobel Prize for his discovery.

For a complete list of videos, visit our video library