"In periods of inflation, any attempt by the Fed to increase real GDP through increases in the money supply ends up increasing only the rate of infla tion." What school of economists makes this point? How do they make their argument?
Answer to relevant Questions"To rational-expectations economists, it makes no difference whether we think in terms of the short run or the long run: Government cannot reduce the rate of unemployment, period." Explain. What are the most important spending items of the federal government? Of state and local governments? Is the level of government spending too high? How has it grown? How does it compare to government spending in other industrial economies? Explain why some economists believe the burden of a public debt cannot be shifted onto future generations. Suppose France can produce surface-to-surface missiles more efficiently than we can, while we are able to produce artichokes more efficiently than they can. Should we specialize in artichokes, trading them for French ...
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