Answered: According to the _____ theory of…

According to the _____ theory of business cycles, a change in the growth rate of the quantity of money has no effect on real GDP. a. new Keynesian b. real business cycle c. Keynesian d. monetarist

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter16: Expectations Theory And The Economy

Section: Chapter Questions

Problem 14QP

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Concept explainers

Demand and Supply

The concept of demand and supply is important for various factors. One of them is studying and evaluating the condition of an economy within a certain period. The analysis or evaluation of the demand-side factors is important for the suppliers to understand the consumer or individual behaviour. The evaluation of supply-side factors is important for the consumer or individuals to understand that what kind of combination of an economic good or what kind of economic good and services he or she should consume to maximise his utility and minimise the cost. Therefore, in microeconomics, both of these concepts are extremely important to have an idea that what exactly is going on in the economy.

Question

According to the _____ theory of business cycles, a change in the growth rate of the quantity of money has no effect on real GDP.

a. new Keynesian

b. real business cycle

c. Keynesian

d. monetarist

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