The Main Belief of the Monetarist Model Is That

question 120

Multiple Choice

The main belief of the monetarist model is that

• A)workers and firms have rational expectations.
• B)the quantity of money should be increased at a constant rate.
• C)productivity shocks explain fluctuations in real GDP.
• D)the economy is slow to adjust to sticky wages and prices.

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Definitions:

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The diverse ways in which scientists study the natural world and propose explanations based on evidence gathered.

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A theoretical framework that interprets behaviors and physical traits as adaptations shaped by evolutionary processes.

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