-In the above figure,suppose the economy starts at point A.The short-run response to an increase in the growth rate of the quantity of money in the monetarist business cycle theory is for the price level to ________ and real GDP to ________.

Question

Quizplus · Accepted Answer

In the monetarist business cycle theory, an increase in the growth rate of the quantity of money leads to a short-run increase in both the price level and real GDP.

-In the Above Figure,suppose the Economy Starts at Point A Short-Run