To explain the long-run determinants of the price level and the inflation rate, most economists today rely on the

A) quantity theory of money.
B) price-index theory of money.
C) theory of hyperinflation.
D) disequilibrium theory of money and inflation.

Quantity Theory of Money

An economic theory that relates the quantity of money in an economy to the level of prices of goods and services.

Price Level

A calculated mean price for all current economic goods and services.

Inflation Rate

The percentage increase in the general price level of goods and services in an economy over a specified period.