Monetarism argues that nearly all economic fluctuations are caused by changes inMultiple choice question.wage rates.money supply.money demand.the velocity of money.

The economic models that assume markets are perfectly competitive and there are rapid adjustments to new economic equilibrium is known asMultiple choice question.monetarism.the New Classical Model.the New Keynesian Model.Keynesian economics.

One key principle of monetarism isMultiple choice question.static expectations.minor expectations.rational expectations.adaptive expectations.

The economic models that assume markets are monopolistically competitive and adjustments to equilibrium take time due to sticky wages and prices is known asMultiple choice question.monetarism.the New Classical Model.the New Keynesian Model.Keynesian economics.

Friedman challenged the view of Keynesian macroeconomics on the relationship betweenMultiple choice question.income and consumption.unemployment and GDP.inflation and the price level.fiscal policy and monetary policy.

Excessive growth in money supply leads tohigh inflationGroup of answer choicesno effect to the economyhigh inflationno inflationlow inflationNext