According to the monetarists
A) an increase in the money supply will not affect the price level in the long run.
B) output can never be above its full employment level.
C) a decrease in the money supply will have no effect on output in the short run.
D) the economy will move to its full employment output level in the long run.

Question

Quizplus · Accepted Answer

According to monetarists, the economy will eventually move to its full employment output level in the long run, with any changes in the money supply affecting the price level rather than output in the long run. Therefore, choice D is the only correct statement.

According to the Monetarists