Using the Monetarist Model, Place the Following Events in the Order

question 312

Multiple Choice

Using the monetarist model, place the following events in the order in which they occur in a business cycle.
I. Money wages fall and the SAS curve shifts rightward.
II. The Federal Reserve decreases the growth rate of the quantity of money.
III. The AD curve shifts leftward.

• A) II, III, I
• B) III, II, I
• C) I, III, II
• D) The events are not part of a monetarist model of the business cycle.

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Definitions:

Aortic Valve

A valve in the human heart between the left ventricle and the aorta that prevents blood from flowing back into the heart chamber after it has been ejected.

Cardiac Cycle

The sequence of events in the heart from the beginning of one heartbeat to the beginning of the next, encompassing systole and diastole phases.

Pericardium

The fibrous sac that encloses the heart, providing it with protection and a fixed position within the thorax.

Myocardium

The thick, muscular layer of the heart wall responsible for the heart's contracting action.