Which view of the macro economy holds that since the long-run growth of real GDP is 3%, the money supply should grow at 3%?
A) classical
B) Keynesian
C) monetarist
D) Great Moderation consensus

Question

Quizplus · Accepted Answer

This view is held by monetarists, who believe that the government should control the money supply to keep inflation under control and promote long-run economic growth. They argue that the money supply should grow at the same rate as potential real GDP in order to avoid inflation or deflation.

Which View of the Macro Economy Holds That Since the Long-Run