In Monetarist Business Cycle Theory, Decreasing the Growth Rate of the Quantity

question 332

Multiple Choice

In monetarist business cycle theory, decreasing the growth rate of the quantity of money and increasing the growth rate of the quantity of money .

• A) causes the economy to enter a recession; causes the economy to enter an expansion
• B) increases real GDP; decreases the inflation rate
• C) causes the economy to enter an expansion; causes the economy to enter a recession
• D) decreases real GDP; decreases the inflation rate

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Definitions:

OPEC Policies

OPEC policies are strategies and guidelines adopted by the Organization of Petroleum Exporting Countries to regulate the oil supply in the global market to stabilize oil prices.

Cyclical Unemployment

Unemployment attributed to the natural fluctuations in the economy tied to the business cycle, with higher unemployment during recessions and lower during expansions.

Overall Unemployment Rate

The percentage of the labor force that is jobless and actively seeking employment within the total economy.

Unemployment

A condition where individuals who are capable of working and are actively seeking work are unable to find employment.