-In the above figure, suppose the economy has moved from point A to point C. According to the monetarist theory of the business cycle, what could have caused this movement?

Question

Quizplus · Accepted Answer

According to monetarist theory, a decrease in the growth rate of the quantity of money can lead to a slowdown in economic activity, causing the economy to move from a higher output point (A) to a lower output point (C).

-In the Above Figure, Suppose the Economy Has Moved from Point