What Does the Classical Theory of Inflation Try to Explain

question 56

Multiple Choice

What does the classical theory of inflation try to explain?

• A) changes in relative prices in the economy determined by factors other than inflation
• B) the effect of inflation on economic growth and political stability
• C) the short-run determinants of the price level and the inflation rate
• D) the long-run determinants of the price level and the inflation rate

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