According to the classical view of the equation of exchange,which of the following two factors are constant?

Question

Quizplus · Accepted Answer

According to the classical view of the equation of exchange, velocity (V) and output (Y) are considered constant in the short run. This view is based on the assumption that the economy operates at or near full employment, where output is determined by the economy's productive capacity and velocity is determined by institutional factors.

According to the Classical View of the Equation of Exchange,which