In the long run,holding all else constant,inflation requires a decrease in the money supply relative ?to the output of goods and services-not enough money chasing too many goods.

Question

Quizplus · Accepted Answer

Inflation occurs when there is too much money chasing too few goods, not the other way around. Therefore, holding all else constant, inflation requires an increase in the money supply relative to the output of goods and services.

In the Long Run,holding All Else Constant,inflation Requires a Decrease