Economists argue that money is neutral in:

Question

Quizplus · Accepted Answer

Economists generally argue that in the long run, money is neutral, meaning that changes in the money supply do not affect real variables such as output, employment, or productivity. However, monetary changes do affect the price level, which is also a real variable, but in the sense that it reflects relative changes in the value of money. In the short run, however, changes in the money supply can have real effects on the economy, such as increasing output and employment through increased demand.

Economists Argue That Money Is Neutral In