The notion that the real quantity of money is always at its long-run equilibrium level is associated with the _____ of the price level.
A) classical model
B) Keynesian model
C) monetarist model
D) modern view

Question

Quizplus · Accepted Answer

The classical model posits that the real quantity of money is always at its long-run equilibrium level, assuming that prices adjust to ensure that all money is held willingly. This reflects the classical dichotomy and the neutrality of money in the long run.

The Notion That the Real Quantity of Money Is Always