Which of the following is a correct characterization of the views of economists on the relation between changes in the money supply and changes in output in the short run?
A)Economists agree that changes in the money supply are responsible for subsequent changes in output.
B)Economists agree that changes in the money supply reflect, rather than cause, changes in output.
C)Economists disagree over whether changes in the money supply are responsible for subsequent changes in output or whether changes in the money supply reflect changes in output.
D)Economists disagree over whether changes in the money supply and changes in output are closely related in the short run.

Question

Quizplus · Accepted Answer

Economists have different views on whether changes in the money supply cause changes in output or if changes in output cause changes in the money supply. Some economists believe that changes in the money supply cause changes in output, while others believe that changes in the money supply reflect changes in output. Therefore, the correct characterization is that there is disagreement among economists on this topic.

Which of the Following Is a Correct Characterization of the Views