The government should not attempt to influence aggregate demand at all, because fiscal policy is ineffective. Instead, the money supply should increase at a steady rate equal to the long-term growth rate of production. The long-term aggregate supply curve is vertical. For 10 points—identify the econ
The government should not attempt to influence aggregate demand at all, because fiscal policy is ineffective. Instead, the money supply should increase at a steady rate equal to the long-term growth rate of production. The long-term aggregate supply curve is vertical. For 10 points—identify the economic school of thought which promulgates such ideas, championed by Milton Friedman.
The government should not attempt to influence aggregate demand at all, because fiscal policy is ineffective.
{monetarism} [accept neo-{classicism}; accept {classical} school]