Question 1
Monetarists believe
◦ the economy is stable.
◦ the economy is rigid.
◦ the economy does not equilibrate quickly.
◦ the economy is unstable.
Question 2
Monetarists believe that real output is determined by
◦ government spending.
◦ the rate of growth of the money supply.
◦ government planning.
◦ aggregate supply.