An Idea from Monetarism That Has Been Absorbed into Mainstream

question 247

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:

Forming Department

A section within a manufacturing facility where raw materials are shaped into products or parts.

Machine-Hour

A unit of measure representing the operation of a machine for one hour, often used in allocating manufacturing overhead.

Departmental Predetermined Overhead Rates

Overhead rates set in advance for each department, used to allocate overhead costs more accurately based on department-specific drivers.

Manufacturing Overhead

All manufacturing costs other than direct materials and direct labor, including costs such as depreciation, electricity, and salaries for managers.