Monetarists Maintain That

question 59

Multiple Choice

Monetarists maintain that

• A)the best way to study the economy is with the expenditure schedule.
• B)control over the money supply implies control over real GDP.
• C)velocity is not constant but is fairly predictable.
• D)All of these responses are correct.

---

Definitions:

Short Run

A period in economics during which at least one input is fixed and cannot be changed by the firm.

Long Run

A period in which all factors of production and costs are variable and companies can enter or exit an industry.

Demand

The quantity of a product or service that consumers are willing and able to purchase at various price levels at a given time.

Substitutes

Goods or services that can be used in place of each other; when the price of one goes up, the demand for the other can increase.