Question

define and describe the relationship between the money and our nation 3 economics goals

Answer 1

The money supply in the economy determine the output produced in the economy, the price level i.e the inflation and the level of unemployment. The increase in money supply increases both the aggregate demand i.e. the level of output and the price level in the economy. The higher level of inflation is associated with the lower unemployment inthe economy. Thus the money determine the three economic goals in the economy

1. total output

2. inflation

3. Unemployment level