The money supply exerts an influence on GDP and thus on unemployment by affecting

Question

Quizplus · Accepted Answer

The money supply affects total intended spending in the economy, which in turn affects GDP and unemployment. When the money supply is increased, individuals and businesses have more money to spend, which can lead to an increase in production and employment. Conversely, a decrease in the money supply can lead to decreased spending and a decrease in economic activity and employment.

The Money Supply Exerts an Influence on GDP and Thus