Exam 15: Macroeconomic Viewpoints: New Keynesian, Monetarist, and New Classical

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Monetarists would argue that in the short run, increases in the money supply act to raise both investment and consumption, while also increasing the price level.

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Which of the following schools of thought emphasize the role of money supply in determining equilibrium real GDP and price level?

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The time it takes for a particular monetary policy to change income is called the _____.

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