According to the quantity theory of money, in the long run an increase in the quantity of money creates an increase in the price level but does not increase real GDP.

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The quantity theory of money suggests that in the long run, an increase in the quantity of money leads to a proportional increase in the price level (inflation) but does not affect real GDP, as real GDP is determined by factors like technology, resources, and institutions, not the money supply.

According to the Quantity Theory of Money, in the Long