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Chapter 1, Problem 3LO
To determine

The basic links among monetary policy, the business cycle, and economic variables

Concept Introduction:

Monetary Policy- It is a policy that takes into account the money supply in the economy. It is enacted by the monetary authority of the country.

Business cycle - It is a pattern explaining the economic expansion and contraction and the causes of it.

Economic Variables - It is any measurement that helps in understanding the functioning of the economy.

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