Monetary Policy That Seeks to Minimize the Business Cycle in the AS/AD

question 41

Multiple Choice

Monetary policy that seeks to minimize the business cycle in the AS/AD model involves:

• A)contractionary monetary policy throughout the business cycle.
• B)expansionary monetary policy throughout the business cycle.
• C)contractionary monetary policy when the economy is above trend growth and expansionary policy when the economy is below trend growth.
• D)expansionary monetary policy when the economy is above trend growth and contractionary policy when the economy is below trend growth.

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Definitions:

Months

Units of time in calendars that approximate the natural period related to the motion of the Moon; traditionally used to divide the year.

First And Last Name

Personal identifier comprising one's given name (first name) followed by one's family name or surname (last name).

Months

Units of time in calendars that constitute roughly one-twelfth of a year.

Feed Self

The ability of an individual to independently eat or drink without assistance.