Answered: Milton Friedman argued nearly all…

Milton Friedman argued nearly all economic fluctuations were caused by Multiple Choice sticky wages. changes in the money supply. unexpected demand shocks. changes in government spending.

MACROECONOMICS FOR TODAY

10th Edition

ISBN:9781337613057

Author:Tucker

Publisher:Tucker

Chapter10: Aggregate Demand And Supply

Section: Chapter Questions

Problem 12SQ

See similar textbooks

Related questions

Q: A recession is a decline in the inflation rate that lasts six months or longer the unemployment…

A: The economic activities are the activities which need to be efficient in functioning so that they…

Q: According to the supply-side economics principles promoted by President Ronald Reagan, economic…

A: The supply side economics is centered towards the aggregate supply and factors affecting the supply…

Q: demand

A: The demand generated by the consumers at given prices during given duration depicts the demand (dd).…

Q: You are the chair of the Malaysian Economic Council. There has been an extremely hot weather due to…

A: In Keynesian economics, an economy is said to be operating at a long-run equilibrium at a output…

Q: The Employment Act of 1946 states that the Fed should use monetary policy only to control the rate…

A: The Employment Act of 1946 laid the responsibility of stability of unemployment and inflation in…

Q: A microeconomist would study a) how a nation's central bank controls the money supply. b) how a…

A: Microeconomics is the study which shows How individual, firms or households make decisions.

Q: If a bank expects inflation to increase in the near future, how will it respond? It will start…

A: Inflation's effects and the function of banks in the overall economy are strongly related. To…

Q: What happens when firms and workers underestimate future prices in the economy? Explain the answer…

A: Expectation about future price and actual price is plays a significant role in the growth of…

Q: Keynes and his followers believed that capitalism was one economic system that guaranteed full…

A: Changes in any component of spending—consumption, investment, or government spending—cause…

Q: Which of the following would impose the greatest costs to society? high levels of expected…

A: Inflation refers to the sustained increase in the general price of goods and services in an economy…

Q: Do the length and severity of the Great Depression reflect a defect in the operation of markets? Do…

A: The economic depression between the years 1929 to 1939 in the world is called as Great Depression.…

Q: What does a decrease in federal government purchases do to the Neo-Keynesian model used in class?…

A: Let's examine the provided options and discuss why they are not the correct answers:a) It shifts…

Q: You are the chair of the president’s Council of Economic Advisers. There has been an extremely hot…

A: The overall upward trend in pricing of goods and services over time is referred to as inflation. The…

Q: The economy of a hypothetical country has been stable for two or three years with very low…

A: Note:- Since we can only answer up to three subparts, we'll answer the first three. Please repost…

Q: Inflation measures the changes in the level of in the economy. Demand-pull inflation…

A: Inflation measures the rise in the general price of goods and services over a period of time.…

Q: The government decides that it will cut taxes in an attempt to move the economy out of a severe…

A: Answer TRUE statements

Q: Long run macroeconomics focuses on economic growth and cyclical unemployment. True or False

A: Economic Growth describes how a country increases its production of goods and services. Employment…

Q: The high cost of oil has caused an increase in the price of plastic. (Plastic is made from…

A: Cost-push expansion(inflation) happens when by and large overall price increment (inflate) because…

Q: Summarize the causes of the Great Depression.

A: Introduction The great depression was the longest and the most severe economic crisis. It longed…

Q: The internet and jet engine are examples of technology that caused Beneficial demand shocks Harmful…

A: A demand shock is a sudden event that leads to a significant increase or decrease in demand for…

Q: What kind of economic gap will start to occur (inflationary or recessionary)? What part of the…

A: 1) The economy will undergo inflationary pressures due to increased consumer spending, which will…

Q: Government actions such as price floors and price ceilings can actually increase unemployment and…

A: The government can intervene in the market to increase the efficiency of the markets. Price control…

Q: Many economic policies fail because Measurement difficulties prevent policymakers from correctly…

A: Economic policies are the government actions to dela with market instability.

Question

Milton Friedman argued nearly all economic fluctuations were caused by

Multiple Choice

sticky wages.
changes in the money supply.
unexpected demand shocks.
changes in government spending.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

The internet and jet engine are examples of technology that caused Beneficial demand shocks Harmful demand shocks Beneficial supply shocks Harmful supply shocks
FILL IN THE BLANKS Inflation measures the changes in the level of in the economy. Demand-pull inflation is caused by a shift in the aggregate demand curve, while cost-push inflation is caused by a shift of the aggregate supply curve. When the price level is increasing by an extremely high rate, the economy is said to be experiencing . Stagflation occurs when the economy is experiencing high inflation, high unemployment, and low at the same time. To combat inflation, the government can use contractionary monetary policy which will also lead to interest rates. Note, however, that there is a short-run tradeoff between inflation and as illustrated by the Philips Curve. Inflation is stable when the unemployment rate is equal to the rate of unemployment.
The Employment Act of 1946 states that the Fed should use monetary policy only to control the rate of inflation. the government should periodically increase the minimum wage and unemployment insurance benefits. the government should promote full employment and production. the government should aim for a 0% unemployment rate.
What happens when firms and workers underestimate future prices in the economy? Explain the answer while focusing on what would happen to actual output as opposed to the expected potential output.
You are the chair of the Malaysian Economic Council. There has been an extremely hot weather due to a climate change. As a result, crop production has fallen drastically. The Prime Minister’s office calls you to discuss the impact on the economy. Would you explain to the Prime Minister that a sharp drop in Malaysia’s crop production would cause inflation, unemployment or both? Discuss.
large or persistent inflation is almost always caused by
A microeconomist would study a) how a nation's central bank controls the money supply. b) how a national government establishes its budget. c) how private firms make decisions to optimize profits. d) what causes the rate of inflation to go up or down. e) what causes the unemployment rate to go up or down.
What does a decrease in federal government purchases do to the Neo-Keynesian model used in class? Group of answer choices It shifts long run aggregate supply left. It shifts long run aggregate supply right. It shifts short run aggregate supply left. It shifts aggregate demand left. It shifts short run aggregate supply right. It shifts aggregate demand right.
Which of the following would impose the greatest costs to society? high levels of expected inflation low levels of expected inflation variable rates of inflation stable rates of inflation
The high cost of oil has caused an increase in the price of plastic. (Plastic is made from petroleum). Bottled water companies now have to pay more for each bottle they use, in return they are now charging more per bottle of water. This would be The paradox of thrift Energy consumption disequilibrium Demand pull inflation Cost push inflation None of the above
compare between demand pull and cost push inflation
Suppose you are an advisor to the Business Cycle Dating Committee. You are asked to look at macroeconomic data to evaluate whether the economy has entered a recession this year. Which data do you look at? How does the economy behave at the onset of a recession? Explain how unemployment changes over the business cycle. Why do these changes occur?