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question 17

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Understand the contributions of key economists (e.g., Milton Friedman) to monetarism.

Evaluate the effectiveness of fiscal and monetary policies in managing economic fluctuations.

Interpret the potential outcomes of variations in the money supply on price levels and economic output.

Understand the basic concepts and assumptions of the quantity theory of money.

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Definitions:

Inventory

The total amount of goods and materials held in stock by a business.

GDP

Gross Domestic Product, the total market value of all final goods and services produced within a country's borders in a given time period.

Exports

Goods or services sent from one country to another for sale or exchange.

Imports

Goods and services that are brought into one country from another for sale.