The idea that changes in aggregate price levels do not affect real outcomes in the economy is called the:
A) neutrality of money.
B) aggregate price theory.
C) neutrality of prices.
D) real output theory.

Question

Quizplus · Accepted Answer

The idea that changes in aggregate price levels do not affect real outcomes in the economy is called the neutrality of money. This means that changes in the money supply or the overall price level will not affect real economic variables such as employment or output in the long run.

The Idea That Changes in Aggregate Price Levels Do Not