Sustained growth in the money supply doesn't affect real output in the long run but does lead to inflation according to
A)new classical economists, but not new Keynesian economists.
B)both new classical and new Keynesian economists.
C)new Keynesian economists, but not new classical economists.
D)neither new classical nor new Keynesian economists.

Question

Quizplus · Accepted Answer

Both new classical and new Keynesian economists agree that in the long run, a sustained increase in the money supply will not affect real output (which is determined by factors such as technology, resources, and labor) but will lead to inflation. This consensus is based on the long-run neutrality of money, a principle accepted across various schools of economic thought.

Sustained Growth in the Money Supply Doesn't Affect Real Output