Question 1
Which of the following schools of economic thought will recommend an expansionary fiscal policy to reduce the unemployment rate?
◦ the monetary schools
◦ the classical school
◦ the Keynesian school
◦ the rational expectation school
Question 2
The ratio of nominal GDP to the stock of money is the
◦ money multiplier.
◦ velocity of money.
◦ real GDP.
◦ GDP deflator.