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
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
Stagflation is the result of
Positive supply shock
Negative supply shock
Positive demand shock
Negative demand shock
A situation of rising prices and falling output is known as
Stagflation
Hyper inflation
Deflation
Disinflation
Stagflation is a situation of:
Stable prices and falling output
Stable prices and rising output
Rising pricing and falling output
According to the monetarists an increase in the money supply, other things equal, shift the aggregate ____ curve to the _____.
Demand : right
Demand : left
Supply : right
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.
Keynes assumed the situation of
Full employment
Under employment
Involuntary unemployment
Marginal unemployment
