Any idea on these?
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.
4. In what sense are profit and loss signals?
a. They signal resources where to move.
b. They signal what goods consumers may want to buy and what goods they may not want to buy.
c. They are important for government and business accounting procedures.
d. a and b
e. all of the above
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