An idea from monetarism that has been absorbed into mainstream macroeconomics would be the Multiple Choice effects of aggregate supply shocks on the level of real output and the price level. importance of the effects of changes in the money supply on the economy. use of discretion rather than rules for guiding economic policy in the economy. influence of real changes, such as in technology and resource availability, on the level of output.

As it is a fact while rational expectation theory deals with the theory that people make decisions based on rationality so it cannot be the right answer and option c is wrong as it has been accepted by macroeconomists while option d is wrong as monetary rule deals with the macroeconomic effects of money supply and central banking system.

What is mainstream macroeconomics?

Mainstream economics follows the rational desire principle, which assumes that people make selections so as to maximize their very own utility, and makes use of facts and mathematical fashions to illustrate theories and examine diverse financial tendencies.

What is the mainstream economic principle?

The mainstream theory describes a monetary machine wherein no disaster can ever arise, this is, a machine in which:

Monetary authorities manage the amount of money but not the delivery of credit which depends on saving decisions;

2) Banks are mere intermediaries that do not create risks;
3) The system of wealth.

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