Economics & AnalysisQuestion 2 of 110
An economist states that the money supply and general price level tend to move together over time. This view is most closely associated with which school of thought?
a.Keynesian economics
b.Supply-side economics
c.Monetarist economics
d.Behavioral economics
Explanation
Monetarists, led by Milton Friedman, argue that changes in the money supply are the primary driver of inflation and nominal output. Keynesians emphasize aggregate demand and fiscal policy. Supply-siders focus on tax and regulatory incentives to production.
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