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5.3 Money Growth and Inflation

Part of Long-Run Consequences of Stabilization Policies in AP® Macroeconomics. Read the opening section, then create a free account for the full interactive lesson, practice, and progress tracking.

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What is the Quantity Theory of Money?

The quantity theory of money provides a framework for understanding how changes in the money supply can affect the price level, which is directly related to inflation.

In this unit

8 lessons

  1. 5.1Fiscal and Monetary Policy Actions in the Short RunPreview lesson
  2. 5.2.1The Short-run Phillips CurvePreview lesson
  3. 5.2.2The Long-run Phillips CurvePreview lesson
  4. 5.3Money Growth and InflationThis lesson
  5. 5.4Government Deficits and the National DebtPreview lesson
  6. 5.5Crowding OutPreview lesson
  7. 5.6Economic GrowthPreview lesson
  8. 5.7Public Policy and Economic GrowthPreview lesson

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