The quantity theory does not provide useful explanations for short-run fluctuations in the economy.

Name: The quantity theory does not provide useful explanations for short-run fluctuations in the economy.
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Question

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The quantity theory of money primarily focuses on long-term changes in the price level and does not account for short-run fluctuations such as business cycles or economic shocks. Other theories, such as Keynesian theory, are better suited to explain these short-term fluctuations.

The Quantity Theory Does Not Provide Useful Explanations for Short-Run