5. In the long run, changes in the money supply affect the aggregate price level but not...

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5. In the long run, changes in the money supply affect the aggregate price level but not real GDP or the interest rate.

Data show that the concept of monetary neutrality holds: changes in the money supply have no real effect on the economy in the long run.

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Essentials Of Economics

ISBN: 9781429218290

2nd Edition

Authors: Paul Krugman, Robin Wells, Kathryn Graddy

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Question Posted: Oct 03, 2024 07:02 AM

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5. In the long run, changes in the money supply affect the aggregate price level but not...

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Essentials Of Economics

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