Which of the following schools of thought believe that expansionary monetary policy affects only prices, not output?
I. classical macroeconomics
II. Great Moderation consensus
A)I only
B)II only
C)I and II
D)Neither I nor II

Question

Quizplus · Accepted Answer

Classical macroeconomics believes that expansionary monetary policy affects only prices because it is based on the assumption of flexible prices and wages, while the Great Moderation consensus does not necessarily hold this view.

Which of the Following Schools of Thought Believe That Expansionary