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

Question

Quizplus · Accepted Answer

According to monetarist theory, an increase in the growth rate of the quantity of money can lead to an expansion in economic activity, moving the economy from a lower output point like D to a higher output point like B.

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