Chapter 33 Post Quiz
The Warring Schools of Marcoeconomics

Matching Questions:

Match the terms on the left with the definition in the column on the right. Enter the lowercase letter of that definition in the box to the left of the question number.

	1. Classical economists	a. the rate at which money circulates through the economy.
	2. Say's Law	b. believe that changes in aggregate demand affect the price level but have no lasting impact upon output and employment.
	3. Keynesian economists	c. money-supply growth is the prime systematic determinant of nominal GDP growth.
	4. Velocity	d. the equation of exchange.
	5. MV=PQ	e. holds that forecasts are unbiased and are based on all available information.
	6. P=kM	f. supplement growth policies with appropriate monetary and fiscal policies to curb business-cycle excesses.
	7. Monetarists	g. the quantity theory of money and prices equation.
	8. Rational-expectations hypothesis	h. states that overproduction is impossible.
	9. Real-business cycle theory	i. explains that the rigidity of real wages and the existence of involuntary unemployment result from firms' attempts to keep wages above the market-clearing level to increase productivity.
	10. Efficiency wage theory	j. holds that business-cycles are primarily due to changes in technology.
	11. Supply-side economics	l. emphasizes incentives and tax cuts as a means of increase economic growth.