The cyclical unemployment rate changes with business cycle fluctuations

The U.S. historical evidence

A) generally supports the quantity theory of money in the long run. B) does not support the quantity theory of money. C) demonstrates that there is no correlation between the money growth rate and inflation. D) shows that a higher inflation rate causes an increase in the money growth rate.

Refer to Figure 2-15. In the circular flow diagram, economic agents M represent

A) firms. B) product markets. C) factor markets. D) households.