Classical macroeconomists focused on the long-run effects of monetary policy on the aggregate price level and argued that it had no short-run or long-run effects on aggregate output.

Question

Quizplus · Accepted Answer

Classical macroeconomists believed that monetary policy only affects the price level in the long run and has no effect on output in either the short or long run.

Classical Macroeconomists Focused on the Long-Run Effects of Monetary Policy