Pablo Believed That Short-Run Changes in Aggregate Demand Affected Aggregate

question 4

Multiple Choice

Pablo believed that short-run changes in aggregate demand affected aggregate output as well as the price level. He believed that there was a role for monetary policy in managing the economy, but he advocated a simple monetary rule that would increase the money supply at a constant rate to grow the economy. Pablo was BEST described as a:

• A) Keynesian.
• B) new classical economist.
• C) supply-sider.
• D) monetarist.

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Definitions:

Formal Groups

Organized groups with defined structures and roles, typically formed within institutions or businesses for specific purposes.

Formalizing

The process of establishing official procedures or systems, often within organizational or legal contexts.

Group Development

A process by which a group of individuals with a common purpose evolves into a cohesive unit with defined roles and norms.

Group Process

The way group members deal with one another while working on a task.