宏观b卷答案.docVIP

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宏观b卷答案

1) D ( 1 point each) 2) B 3) C 4) D 5) D 6) C 7) D 8) A 9) B 10) D 11) D 12) C 13) A 14) C 15) A 16) C 17) D 18) A 19) C 20) B 21) D 22) C 23) C 24) D 25) A 26) A 27) D 28) B 29) A 30) A 31) D 32) A 33) B 34) A 35) D 36) B 37) B 38) D 39) D 40) B 41) TRUE 42) TRUE 43) TRUE 44) FALSE 45) FALSE 46) FALSE 47) TRUE 48) FALSE 49) FALSE 50) FALSE 51) TRUE 52) FALSE 53) TRUE 54) FALSE 55) TRUE 56) FALSE 57) TRUE 58) TRUE 59) FALSE 60) TRUE 61) Both theories are centered about changes in investment as the central cause of the business cycle. Keynesians use the concept of animal spirits and the inability to forecast the future as the impulse for causing changes in investment. Monetarists assert that changes in the growth rate of the quantity of money are impulse that leads to business cycles. According to monetarists, changes in the interest rate are the result of changes in the growth rate of the quantity of money and the interest rate changes lead to changes in investment. As for the adjustment following the initial shock of a change in the level of investment, both theories envision a multiplier effect. This effect causes a greater change in aggregate demand (and hence real GDP) than would occur strictly as a result of the initial change in real GDP. Both theories also believe that sticky wages limit the ability of the money wage rate to adjust to changes in aggregate demand. Keynesians believe in longer term stickiness while monetarists believe in only temporary stickiness. This difference means that Keynesians believe that the economy can be stuck below full employment indefinitely, while monetarists believe any di

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