• 2022-05-29
    Which of the following is a FALSE statement?
    A: the very long run focuses on the growth of productive capacity
    B: in the very long run, the productive capacity is assumed to be given
    C: in the very short run, shifts in aggregate demand determine how much output is produced
    D: fluctuations in the rates of inflation and unemployment are important long-run issues
    E: at the full-employment level of output, capital is not used 100 percent
  • D

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    • 0

      Government intervention into economic activity will NOT lead to a change in the price level A: in the very short-run model B: in the medium-run model C: in the very long-run model D: in the classical model E: assuming a macro-model that focuses on the growth of productive capacity

    • 1

      Monetary policy affects employment A: only in the long run. B: only in the short run. C: in both the long run and the short run. D: in neither the long run nor the short run.

    • 2

      It pays ______ to buy goods of high quality. A: in the long run B: in the short run C: at a run D: on the run

    • 3

      Which of the following is accurate? A: Monetary policy is neutral in both the short run and the long run. B: Though monetary policy is neutral in the long run, it may have effects on real variables in the short run. C: Monetary policy has profound effects on real variables in both the short run and the long run. D: Monetary policy has profound effects on real variables in the long run, but is neutral in the short run.

    • 4

      Which of the following statements is the most accurate? In general,_____________ A: the monetary approach to the exchange rate is a long run theory. B: the monetary approach to the exchange rate is a short run theory. C: the monetary approach to the exchange rate is both a short and long run theory. D: the monetary approach to the exchange rate neither long run nor short run theory. E: the monetary approach to the exchange rate is considered less practical than the law of one price.