Roots of Modern Macroeconomics

A. that monetary policy affects aggregates demand
B. that markets do not clear quickly
C. that fiscal policy affects aggregate demand
D. of rational expectations.

A. it is difficult to measure the value of nominal GDP over time
B. there has been very little fluctuation in the money supply over time.
C. it is difficult to measure the demand for money over time
D. whether velocity is constant or not may depend on how the money supply is measure.

A. an equal percentage change in nominal DGP.
B. an equal percentage change in real GDP
C. a larger percentage change in nominal GDP
D. a smaller percentage change in nominal

A. assume that this year’s inflation rate will be the same as last year’s inflation rate
B. merely guess at the inflation rate.
C. assume that this year’s inflation rate will be equal to the average inflation rate over the past 10 years
D. Use all available information in forming their expectations.

A. Rational-expectations hypothesis
B. Passive-expectations hypothesis
C. adaptive expectations hypothesis
D. lagged-expectations hypothesis.

A. fine tuning
B. monestarism
C. microeconomics foundations of macroeconomics
D. the classical model

A. the behaviour of trade unions.
B. the quantity of money
C. price and wages
D. the level of aggregate demand for goods and services

A. the level of aggregate demand for goods and services.
B. prices and wages
C. interest rates
D. the quantity of money

A. new-Keynesian.
B. post-Keynesian.
C. classical economists.
D. Keynesian.

A. monetarists.
B. keynesians
C. post-keynesians
D. new classical school