Macro doubts

[Homer Simpson]

1. Which of the following factors can change continually in such a way as to bring about continued increases in aggregate demand?

a. the money supply
b. autonomous consumption
c. autonomous investment
d. government spending
e. all of the above

*(what exactly does continuous increases here mean?)

2. If V is constant, the rate of growth of M that is consistent with a stable price level is

a. the expected rate of inflation.
b. the rate of growth of PQ.
c. the rate of growth of Q.
d. zero.

3. A dynamic, changing economy will

a. experience frictional and structural unemployment.
b. experience only cyclical unemployment.
c. have zero unemployment.
d. have no natural unemployment.

[hs]

is 2nd ans c

[Dreyfus]

For 1 it should be all of the above....as aggregate demand shifts with money supply( monetary policy), government exp(fiscal policy), autonomous I and C...will result in shift of AD curve!
Q2 MV=PQ
when V and P is constant....then Q must increase to compensate increase in M
Q3 I think it should be option.a as in dynamic economy changes occur more frequently ...structural unemployment can never be 0 in this case

[mrittik]

It is money supply only...because it doesn't hamper the Consumption, G, NX & I....continually increase means without any harm to these 4 factors it has continually increase the GDP with an inflation...