The Monetarists school of economics believes that changes in _______ are the primary Causes of changes in ______.

Question

Quizplus · Accepted Answer

The Monetarists believe that changes in the money supply (controlled by the central bank) are the primary cause of changes in nominal GDP (total output adjusted for inflation). They argue that changes in the money supply ultimately affect prices in the short run and output in the long run, but that government intervention in the economy is generally ineffective or even harmful.

The Monetarists School of Economics Believes That Changes in _______