The Part of the Money Supply Directly Produced by the Government

question 51

Multiple Choice

The part of the money supply directly produced by the government or central bank is called:

• A)inside money
• B)outside money
• C)direct money
• D)indirect money

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Definitions:

Equilibrium Real National Output

The level of output where aggregate supply equals aggregate demand in an economy, adjusted for inflation.

Inventories

Goods that have been produced but remain unsold.

Production

The process of combining various material inputs and immaterial inputs (plans, know-how) in order to make something for consumption (the output).

Keynes

refers to John Maynard Keynes, a British economist whose theories on the causes of prolonged unemployment and recommendations for government intervention in economies to stimulate demand and control inflation have had a significant influence on modern macroeconomics.