Category: Roots of Modern Macroeconomics

A. stagflation in the late 1970s
B. demand-pull inflation in the 1960s
C. low growth rates in the 1950s
D. The prolonged existence of high unemployment during the Great depression

A. laissez-faire.
B. monetary policy
C. fine tuning
D. automatic stablisers

A. the fallacy of composition
B. negative entropy.
C. hysteresis.
D. ceteris paribus

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

A. how unemployment could have persisted for so long during the Great Depression
B. The increase in the growth rate of real output in the 1950s
C. the stagflation of the 1970s
D. Why policy changes that are perceived as permanent have more of an impact on a person’s behaviour than policy changes that are viewed as temporary.

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

A. requires fine tuning to reach full employment
B. can never deviate from full employment
C. will never be at full employment
D. is self-correcting.

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. not constant and the quantity theory of money does hold.
B. constant and the quantity theory of money does hold.
C. not constant and the quantity theory of money does not hold.
D. constant and the quantity theory of money does not hold.

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.