Sustained inflation will be caused by a sustained growth in the nominal money supply at a rate faster than the growth rate of velocity and the growth rate of output according to
A)new Keynesian economists but not according to new classical economists.
B)new classical economists but not according to new Keynesian economists.
C)both new classical and new Keynesian economists.
D)neither new classical nor new Keynesian economists.

Question

Quizplus · Accepted Answer

Both new classical and new Keynesian economists argue that sustained inflation will be caused by a sustained growth in the nominal money supply at a rate faster than the growth rate of velocity and the growth rate of output. However, they differ in their views on how the economy responds to inflation and how policymakers should respond to it.

Sustained Inflation Will Be Caused by a Sustained Growth in the Nominal