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'art 1 Check Your Understanding- Read Milton Friedman's quote and answer the questions. IV Let us suppose, then, that one day a helicopter ies over

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'art 1 Check Your Understanding- Read Milton Friedman's quote and answer the questions. IV \"Let us suppose, then, that one day a helicopter ies over our hypothetical long-stationary community and drops additional money from the sky equal to the amount already in circulation...the additional pieces of paper do not alter the basic conditions of the community. They make no additional productive capacity available." Explain the concept of neutrality of money. Explain how an increase in the money supply leads to an increase in the demand for money in the long run. If expansionary monetary policy has no long run impact on real output, why do so many economists favor expansionary monetary policy when there is a recession

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