Within the Aggregate Demand-Aggregate Supply Framework, Monetarists Argue That a Change

question 203

Multiple Choice

Within the aggregate demand-aggregate supply framework, monetarists argue that a change in aggregate

• A) demand will have a large effect on the price level but a temporary effect on output.
• B) demand will have a small effect on the price level but a permanent effect on output.
• C) demand will have a large effect on the price level and a large effect on output.
• D) supply will have a large effect on the price level but a temporary effect on output.

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Definitions:

Non-directional

A hypothesis that specifies a difference or relationship but not the direction, stating only that one doesn't expect to find equality.

Independent Variable

A variable in a scientific experiment that is manipulated or changed to observe its effect on a dependent variable.

Part-time

Refers to jobs or positions that require fewer hours of work per week than full-time positions.

Dependent Variable

The factor in research that is likely to shift following modifications to the independent variable.