Which of the following pieces of evidence is most consistent with the monetarist theory?
A. Labor supply decisions do not seem to depend on real interest rates.
B. Changes in real GDP and the quantity of money move closely together.
C. Money wage rates take some time to adjust to price changes.
D. Productivity and GDP move closely together.
Answer:B
Which of the following pieces of evidence is most consistent with the monetarist theory?
A. Labor supply decisions do not seem to depend on real interest rates. B. Changes in real GDP and the quantity of money move closely together. C. Money wage rates take some time to adjust to price changes. D. Productivity and GDP move closely together.