What is a long-run economic aspect on which most economists agree?
A) The natural rate of unemployment depends primarily on the level of aggregate demand.
B) Inflation depends primarily upon the money supply growth rate.
C) There is a direct relationship between the inflation rate and the natural rate of unemployment.
D) The rate of economic growth depends primarily on the growth in money supply.

Question

Quizplus · Accepted Answer

Most economists agree that inflation depends primarily upon the money supply growth rate in the long-run. This is often referred to as the Quantity Theory of Money, which states that the level of prices in an economy is directly proportional to the supply of money in circulation. However, this relationship may not hold in the short-run, as other factors such as changes in demand may affect prices.

What Is a Long-Run Economic Aspect on Which Most Economists