Question

According to which theory of the business cycle do changes in the quantity of money never play a role in helping to explain fluctuations in real variables? Select one a. monetarist bnew Keynesian c. Keynesian d real business de During a recession, spending on tends to fail mare dramaticaly than spendingon Select one a necessities, xuries b. nondurable goods durable goods cfood cars d. durable goods, nonduble goods ch Using the monetarist model, place the following events in the order in which they occur in a business de Money wages Sall and the SAS er aftur night and The Federal Rere decres the growth rate the quantity of money III. The AD curved etward Select one b. t. 11 d. The events are not part of a monetarist made of the business cycle. Most economic growth in the world occurred beween 1,000,000 BC and 1300 AD. Select one True False Table 1

Answer 1

1)D.......real business cycle.....

2)D...... during recession, spendings on durable goods like vehicles, electronics tend to decrease and spending on non durables like food, beverages tend to remain same or increases.

3)C.......first feds reduces the quantity of money leading to reduced aggregate demand and this will lead to money wage fall and short run aggregate supply to shift right.

4)False...... because,most economic growth in the world started after the industrial revolution in 17th century which led to increased standards of living.