Monetary policy is neutral in the long-run because: Short-run expansionary monetary policy increases output but it also increases prices. Therefore, in the long-run wages have to be increased, which shifts the SRAS to the left until equality with the LRAS is restored In the long-run the SRAS curves-up and becomes vertical O Short-run expansionary monetary policy increases output but it also increases prices. Therefore, in the long-run AD has to shift left until equality with the LRAS is restored In the long-run, Climate Change will render meaningless the money supply