In seeking to explain what determines GDP,monetarists focus on the money supply while Keynesians focus on the spending components of total expenditures.

Question

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Monetarists believe that the primary factor influencing GDP is changes in the money supply, while Keynesians argue that GDP is determined by the level of aggregate demand, which is the sum of spending by households, businesses, and the government.

In Seeking to Explain What Determines GDP,monetarists Focus on the Money