Macro doubts

Posted by Homer Simpson on May 11, 2014; 2:01pm
URL: http://discussion-forum.276.s1.nabble.com/Macro-doubts-tp7589327.html

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.