A Monetarist Would Argue That

question 69

Multiple Choice

A monetarist would argue that

• A) small changes in M could be offset by changes in V and not cause changes in P.
• B) changes in M in the short run can cause Real GDP to fall.
• C) prices and wages are flexible.
• D) b and c
• E) a,b and c

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Definitions:

Operating Costs

are expenses associated with the day-to-day functioning of a business, such as rent, utilities, and payroll.

Price of Eggs

The monetary cost required to purchase eggs, which can vary based on factors such as location, type of eggs, and market conditions.

Price Gouging

A situation where sellers increase the prices of goods, services, or commodities to a level much higher than is considered reasonable or fair, often during a crisis.

Increase in Supply

A scenario where there is a growth in the availability of a product or service, often due to improvements in technology or increases in input resources.