Because Shifts in Aggregate Demand Are Not Viewed as Being

question 102

Multiple Choice

Because shifts in aggregate demand are not viewed as being particularly important to aggregate output fluctuations,they do not see much need for activist policy to eliminate high unemployment. "They" refers to proponents of

• A)the natural rate hypothesis.
• B)monetarism.
• C)the Phillips curve model.
• D)real business cycle theory.

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Definitions:

Homeowners' Association

An organization in a subdivision, planned community, or condominium building that makes and enforces rules for the properties and its residents.

Rentals

Payments made periodically for the use of someone else's property or equipment.

Unreasonable Zoning

Zoning regulations or decisions that are arbitrary, capricious, or unreasonable in restricting the use of land, potentially leading to legal challenges.

Constructive Taking

A situation where government regulation of property is so restrictive that it effectively amounts to a taking under the Fifth Amendment, requiring just compensation.