What exactly is "quantity of money per unit of output"? When making the case about inflation being monetary phenomena, Milton Friedman shows a graph where &quot;quantity of money per unit of output&quot; move together with CPI. What is &quot;quantity of money per unit of output&quot;? Is it real GDP?
Update:
Link to presentation
It is the quantity of money, measured by money supply of 'near money', divided by the real GDP. You can see that from reproduction of those tables in the:
The Collected Works of Milton Friedman, compiled and edited by Robert Leeson and Charles G. Palm.
Here is a link to chapter from that book which reproduces the lecture and the figure from the lecture. You can see the picture also below (the note under the table makes it explicitly clear Friedman is talking about quantity of money per real GDP.