Monetarism Which of the following is a position held monetarists?
The economy is unstable; wages and prices are inflexible.
Changes in the velocity of money are unpredictable.
Aggregate demand depends on money velocity but not on the money supply.
The short-run aggregate supply curve slopes upward.

Initially, the economy is in long-term equilibrium. Suppose there is an increase in velocity-that is, there is an increase in the average number dollar is spent to buy goods and services.
Show the long-run effect of this change according to the monetarist view, ceteris paribus, by dragging one or both curves on the graph below.