Money supply changes drive price levels and income fluctuations in society.
The article discusses how the amount of money in circulation affects the total amount of money earned. It explains that when the demand for money equals the supply, prices and income reach a balance. If the demand for money stays the same and output is constant, changes in the money supply lead to changes in prices and income. The study compares two theories and shows that stable money demand and a fixed amount of money are needed for economic balance.