Liberals argue against the Conservative "monetarist" program to control inflation because
A) the relationship between output, employment, and money supply growth is not stable and predictable.
B) a fixed money supply growth rule prevents government and monetary authorities from accommodating the vagaries of each business cycle.
C) structural factors such as technological change, global competition, and income inequality have restrained and/or depressed labor costs.
D) All of the above.

Question

Quizplus · Accepted Answer

All of the above reasons are used by liberals to argue against the Conservative "monetarist" program to control inflation. They argue that the relationship between output, employment, and money supply growth is not stable and predictable, a fixed money supply growth rule prevents government and monetary authorities from accommodating the vagaries of each business cycle, and structural factors such as technological change, global competition, and income inequality have restrained and/or depressed labor costs.

Liberals Argue Against the Conservative "Monetarist" Program to Control Inflation