-In the Above Figure, Suppose the Economy Has Moved from Point

question 237

Multiple Choice

-In the above figure, suppose the economy has moved from point A to point C. According to the monetarist theory of the business cycle, what could have caused this movement?

• A) a decrease in the growth rate of the quantity of money
• B) an increase in the growth rate of the quantity of money
• C) an increase in the money wage rate
• D) an increase in uncertainty

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Definitions:

Behaviorism

An educational theory suggesting that conditioning is the root through which behaviors are learned.

Psychoanalytic Psychology

A branch of psychology that focuses on understanding human behavior through the exploration of the unconscious mind, as developed by Sigmund Freud.

American Philosopher

A scholar originating from the United States who engages in the study of fundamental questions about existence, knowledge, values, reason, mind, and language.

Austrian Physician

Likely refers to Sigmund Freud, the founding father of psychoanalysis, though there are many other notable Austrian physicians.