An idea from monetarism which has been absorbed into mainstream macroeconomics would be the:
A) Effects of aggregate supply shocks on the level of real output and the price level
B) Importance of the effects of changes in the money supply on the economy
C) Use of discretion rather than rules for guiding economic policy in the economy
D) Influence of real changes, such as in technology and resource availability, on the level of output

Question

Quizplus · Accepted Answer

The importance of the effects of changes in the money supply on the economy is a key idea from monetarism that has been absorbed into mainstream macroeconomics, with a focus on the role of monetary policy in stabilizing the economy.

An Idea from Monetarism Which Has Been Absorbed into Mainstream