An Idea from Monetarism Which Has Been Absorbed into Mainstream

question 98

Multiple Choice

An idea from monetarism which 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:

Cognitive

Pertaining to mental processes such as perception, memory, thought, and problem-solving.

Neuroticism

A personality trait characterized by emotional instability, anxiety, moodiness, worry, and sadness.

Narcissism

Narcissism is a personality trait characterized by an inflated sense of self-importance, a deep need for excessive attention and admiration, and a lack of empathy for others.

Extraversion

A personality trait characterized by sociability, enthusiasm, and assertiveness, indicating an outward turning of emotional energy.