Macroeconomics
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Questions and Answers

According to the symposium in American Economic Review, what drives the long-term growth of capitalist economics?

  • Aggregate demand shocks
  • Output capacity
  • Demand-side
  • Supply-side (correct)
  • What are the short-term fluctuations around the long-term growth trend due to, according to the symposium?

  • Demand-side factors (correct)
  • Supply-side factors
  • Aggregate demand shocks
  • Output capacity
  • In the short-run, what determines aggregate demand according to the symposium?

  • Output
  • Output and output capacity (correct)
  • Prices
  • Wages
  • What do aggregate demand shocks on output reflect, according to the symposium?

    <p>Insufficient flexibility of prices</p> Signup and view all the answers

    According to the symposium, is there a long-run trade-off between inflation and unemployment?

    <p>No</p> Signup and view all the answers

    According to the symposium, what is the primary target of monetary policy?

    <p>Controlling inflation</p> Signup and view all the answers

    What does the symposium suggest is the main driver of long-term growth in capitalist economics?

    <p>Supply-side factors</p> Signup and view all the answers

    According to the symposium, what determines demand in the short-run?

    <p>Output</p> Signup and view all the answers

    What is the relationship between monetary policy and inflation in the long-run, according to the symposium?

    <p>Monetary policy has no effect on inflation</p> Signup and view all the answers

    What do short-term fluctuations around the long-term growth trend reflect, according to the symposium?

    <p>Insufficient flexibility of prices and wages</p> Signup and view all the answers

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