According to monetarists,the aggregate supply curve is
A)Upward-sloping to the right.
B)Vertical at the natural rate of unemployment.
C)Flat until full employment is reached.

Question

Quizplus · Accepted Answer

Monetarists believe that in the long run, changes in the money supply only affect the price level and not the real output of the economy. Therefore, the aggregate supply curve is vertical at the natural rate of unemployment, which is the level of output that an economy can sustain in the long run without affecting the rate of inflation.

According to Monetarists,the Aggregate Supply Curve Is