Monetary Neutrality Implies That in the Long Run

question 149

Multiple Choice

Monetary neutrality implies that in the long run:

• A) monetary policy does not affect the level of economic activity.
• B) long-run aggregate supply depends on monetary policy.
• C) changing the money supply does not affect the aggregate price level.
• D) aggregate demand is independent from monetary policy.

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Definitions:

Computer-Driven Assessment

Allowing a computer program to assist in the assessment process and preparation of reports. Some observers believe computer-assisted questioning is at least as reliable as structured interviews and can provide an accurate diagnosis at a low cost.

Reliable

The degree to which an instrument or method yields consistent results over time or across different observers, indicating stability and dependability in measurement.

Poor Quality

Descriptive of something that fails to meet an acceptable standard or lacks excellence.

Semi-Structured Interview

Uses prescribed items and thereby allows the examiner to obtain the necessary information within a relatively short amount of time. However, this kind of interview also gives leeway to the examiner should the client need to “drift” during the interview process.