Which school of thought believes that expansionary monetary policy affects only prices, not output? I. classical macroeconomics
II) Great Moderation consensus
A) I only
B) II only
C) I and II
D) Neither I nor II

Question

Quizplus · Accepted Answer

Classical macroeconomics holds the view that expansionary monetary policy primarily affects prices rather than output, based on the theory that the economy naturally adjusts to its full employment level.

Which School of Thought Believes That Expansionary Monetary Policy Affects