Suppose the Growth Rate of the Quantity of Money Increased

question 237

Multiple Choice

Suppose the growth rate of the quantity of money increased from 5 percent per year to 8 percent per year. According to the ________, this event would trigger a business cycle expansion.

• A) Keynesian cycle model
• B) real business cycle model
• C) aggregate supply cycle model
• D) monetarist cycle model

---

Definitions:

Demand Curve

A graphical representation of the relationship between the price of a good or service and the quantity demanded by consumers.

Total Revenues

The sum of money a company earns from selling goods or providing services in a specific timeframe.

Demand Schedule

A table that lists the quantities of a good a consumer will buy at different prices.

Total Revenues

The complete sum of money earned from selling goods or services, prior to deducting any costs.