-In the Above Figure, Suppose That the Economy Has Moved

question 11

Multiple Choice

-In the above figure, suppose that 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) an increase in the money wage rate
• B) an increase in the growth rate of the quantity of money
• C) a decrease in the growth rate of the quantity of money
• D) an increase in uncertainty

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An idea of some desired future state.

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