A conclusion of the classical macroeconomic model is that

Question

Quizplus · Accepted Answer

The classical macroeconomic model posits that the average price level in an economy is primarily determined by the money supply. According to this model, changes in the money supply directly affect price levels, aligning with the Quantity Theory of Money. This theory suggests that a change in the money supply will proportionally change the price level if the velocity of money and the level of output remain constant.

A Conclusion of the Classical Macroeconomic Model Is That