Option B
Explanation: According to the monetarists, business cycle is a result of the changes in the money supply.
What is the primary driver of business cycles according to monetary theory? a. credit cards b. fluctuations in the...
What is the primary driver of business cycles according to monetary theory? Supply of money Credit cards Aggregate decisions over saving and spending Fluctuations in the supply of money in the economy
what is the primary driver of business cycles according to monetary theory ?
Read Eye on the Business Cycle. What, according to the mainstream theory of the business cycle, is the most common source of recession: a decrease in aggregate demand, a decrease in aggregate supply, or both? Which is the most likely component of aggregate demand to start a recession? How does the aggregate demand multiplier influence a recession? is the most common source of recession. According to the mainstream theory of the business cycle, a decrease in The most likely component...
10.16 What – according to real business cycle theorists – is the primary cause of cyclical fluctuations in output over time (i.e., what is the primary cause of business cycles)?
Question five: a) What are meant with permanent and transitory fluctuations according to random walk of GDP theory? b) One of the issues debated in real business cycle theory is the disturbance that hit the economy. Explain what is meant with this disturbance.? c) Compare between proposition by perfect foresight model and Lucas model regarding how Monetary Policy can effect output in the short and long run. ?
According to the quantity theory of money, if aggregate spending in an economy increases by 3% and real GDP increases by 1%, we also know that there is: Group of answer choices a. a positive supply shock. b.a recession. c. inflation d. a war.
x A2 Avv Styles U prou Or Yusra SLIVICES mar given pero rore 17. Business cycles a. are explained mostly by fluctuations in consumption. b. no longer are very important due to government policy. c. are fluctuations in real GDP and related variables over time. d. are easily predicted by competent economiſts. e. is like cobwebs 18. Most economists use the aggregate demand and aggregate supply model primarily to analyze a. short-run fluctuations in the economy. b. the effects of...
1. Business cycles a. are explained mostly by fluctuations in corporate profits.b. no longer are very important due to government policy.c. are fluctuations in real GDP and related variables over time.d. All of the above are correct.
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...
What determines the magnitude of the changes in price level when central bank takes monetary policy measures that leads to a change in the aggregate demand? a. Changes in the money supply b. Slope of the aggregate supply curve c. Rate of change of interest rate d. Total money supply in the economy