Economics 9708 · AS & A Level · Monetary policy

Monetary policy — practice question

Which statement does not accurately describe the Monetarist view of how the economy operates?

  • AInflation is always caused by increases in the money supply in the long run.
  • BThe long-run aggregate supply curve is vertical in shape.
  • CThe velocity of circulation of money is highly unstable.
  • DWages are flexible both upwards and downwards.

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