Tell which school of thought would most likely be associated with the following quotes: ‘‘Changes in prices and wages are too slow to support the new classical assumption of persistent macroeconomic...

Tell which school of thought would most likely be associated with the following quotes: ‘‘Changes in prices and wages are too slow to support the new classical assumption of persistent macroeconomic equilibrium.’’ , ‘‘The best monetary policy is to keep the money supply growing at a slow and steady rate.’’ , ‘‘Frictional unemployment is a result of workers voluntarily substituting leisure for labor when wages fall.’’ , ‘‘A change in the money supply will affect GDP after a long and variable lag, so it is difficult to predict the effects of money on output.’’ , ‘‘Government policymakers should use fiscal policy to adjust aggregate demand in response to aggregate supply shocks.’’ , ‘‘The economy is subject to recurring disequilibrium in labor and goods markets, so government can serve a useful function of helping the economy adjust to equilibrium.’’ , ‘‘Since the aggregate supply curve is horizontal, aggregate demand will determine the equilibrium level of real GDP.’’ , ‘‘If everyone believed that the monetary authority was going to cut the inflation rate from 6 percent to 3 percent, such a reduction in inflation could be achieved without any significant increase in unemployment.’’

May 18, 2022
SOLUTION.PDF

Get Answer To This Question

Related Questions & Answers

More Questions »

Submit New Assignment

Copy and Paste Your Assignment Here