Business, 11.12.2019 04:31, pito63

Classify each of the statements as true or false.
1. classical macroeconomists believed that unemployment could be kept low only through monetarypolicy free of political influence.
2. discretionary fiscal policy is the preferred method of economic stabilization by modernmacroeconomists because it avoids the risk of a political business cycle.
3. originally, monetarists believed that since the velocity of money was stable in the short run, thebest way to assure economic growth was to gradually and consistently increase the money supply.
4. the key result of real business cycle theory is that the expectations of business owners is theprimary driver of the business cycle because these expectations will affect their decisions, resultingin real economic impacts.
4. the political business cycle captures the relationship between the political party in office and thegrowth rate of the economy.

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Classify each of the statements as true or false.
1. classical macroeconomists believed that u...