Printing more paper money does not affect the economy's long-run productivity or its ability to produce; these outcomes are determined by:

Question

Quizplus · Accepted Answer

Long-run productivity and the economy's ability to produce are determined by a combination of resources, technology, and institutions. Printing more paper money may temporarily boost demand and inflation, but it does not alter the underlying factors that determine an economy's productive capacity.

Printing More Paper Money Does Not Affect the Economy's Long-Run