12. With the upward-sloping SRAS curve based on the misperceptions theory, an unanticipated increase in the money supply increases output (and is, thus, non-neutral) in the short run. However, because the long-run aggregate supply curve is vertical, an unanticipated increase in the money supply does not affect output (and so is neutral) in the long run, An anticipated increase in the money supply causes price expectations to adjust immediately and leads to no misperceptions about the price level; thus, an anticipated increase in the money supply is neutral in both the short and long runs.