With Regard to National Income,what Is the Hypothesis in Economics

question 75

Multiple Choice

With regard to national income,what is the hypothesis in economics known as hysteresis?

• A)The economy's adjustment process operates in response to an expansion of the money supply,but not a contraction.
• B)Changes in the money supply have a stronger influence on investment demand than do changes in fiscal policy.
• C)The monetary transmission mechanism does not apply in an open-economy setting.
• D)The role of money in the long run is neutral.
• E)The path of real GDP in an economy can influence that economy's level of potential output.

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Definitions:

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Vibrations that travel through the Earth's interior or along its surface, generated by earthquakes or other seismic events.

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A steep slope or cliff formed directly by movement along a fault and indicative of the relative motion of the fault blocks.

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Hill Side

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