Which of the following pieces of evidence is most consistent with the monetarist theory?

Question

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The monetarist theory asserts that the quantity of money has a direct impact on the economy, particularly on nominal output in the short run and on prices in the long run. Therefore, changes in real GDP and the quantity of money moving closely together is consistent with this theory. Option A is not consistent with the monetarist theory, as it suggests that labor supply decisions are not influenced by interest rates, which is a key component of the theory. Option C may reflect another theory, such as the classical theory or the supply-side theory, which focuses on productivity as a driver of economic growth. Option D is not specific to monetarist theory, as wage rigidity is a common phenomenon across different economic theories.

Which of the Following Pieces of Evidence Is Most Consistent