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:

Market Revolution

The dramatic increase in exchange of goods and services in the 19th century U.S., facilitated by advancements in transportation, commercialization, and industrialization.

Economic Opportunities

Prospects for participation in economic activities that can lead to employment and financial success.

Cult of Domesticity

A 19th-century ideology in the United States and Britain that glorified women's roles in home-making and child-rearing, emphasizing piety, purity, domesticity, and submissiveness.