37) In the Classical model, a persistent inflation is caused by:

(no explanation required)

money supply growth that exceeds real GDP growth

open market decisions to raise the Federal Funds Rate

continuous increases in taxes by the federal government

a low natural rate of unemployment in the labor market

38) Classical economists tend to favor:

(no explanation required)

more government regulations over the economy

reliance upon markets to remove excess output

avoiding unemployment by using an activist fiscal policy

higher tax rates to stimulate economic growth