An Idea from Monetarism That Has Been Absorbed into Mainstream

question 61

Multiple Choice

An idea from monetarism that has been absorbed into mainstream macroeconomics would be the

• A)effects of aggregate supply shocks on the level of real output and the price level.
• B)importance of the effects of changes in the money supply on the economy.
• C)use of discretion rather than rules for guiding economic policy in the economy.
• D)influence of real changes, such as in technology and resource availability, on the level of output.

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Definitions:

Hierarchy of Needs

A psychological theory proposed by Abraham Maslow that categorizes human needs into five hierarchical levels, from basic physiological needs to self-actualization.

Maslow's Hierarchy

A psychological theory proposed by Abraham Maslow that outlines a five-tier model of human needs, from basic (physiological) to more complex (self-actualization) needs.

Assumptions

Beliefs or ideas taken for granted without any proof or surety, often used as bases for reasoning and decision-making.

Motivation Theory

A concept that explains what drives individuals to initiate, direct, and sustain behaviors to satisfy their needs and goals.