Stagflation is the result of
Positive supply shock
Negative supply shock
Positive demand shock
Negative demand shock
Monetarists believe that
The aggregate demand curve is downward sloping
A change in the quantity of money causes the aggregate demand curve to shift
Changes in government spending and taxes cause the aggregate demand curve to shift
Both a and b
The aggregate supply curve is
The total quantity of raw materials offered for sale at different process
The total quantity of final goods and services offered for sale at the current price level
The total quantity of final goods and services offered for sale at different price levels.
The total quantity of intermediate and final goods and services offered for sale at different price levels.
Monetarists determine the aggregate demand curve from
The equation of exchange
Its three component parts: consumer expenditure, investment spending and government spending and government spending
Its four component parts: consumer expenditure, investment spending, government spending and net exports
The spending multiplier
According to monetarists a decline in the money supply, holding other factors constant, shifts the aggregate ____ curve to the ______.
Demand : right
Demand : left
Supply : right
Supply : left
According to the Keynesian, a decrease in government spending other things equal shifts the aggregate ____ curve to the
Demand : light
Keynes assumed the situation of
Full employment
Under employment
Involuntary unemployment
Marginal unemployment
The Keynesian analysis of aggregate demand indicates that changes in the money supply
Have no effect on aggregate demand
Shift the aggregate demand curve in the opposite direction of the change in government spending
Shift the aggregate demand curve in the same direction as the change in government spending
Move the economy along the aggregate demand curve rather than shifting it.
The aggregate demand curve is downward sloping because
A lower price level, holding the nominal quantity of money constant, leads to a larger quantity of money in real terms causes the interest rate to fall, and stimulates planned investment spending
A lower price level, holding the nominal quantity of money constant leads t a larger quantity of money in real terms, causes the interest rate to fall, and stimulates planned investment spending
A higher price level, holding the nominal quantity of money constant
A higher price level holding the nominal quantity of money change
