According to the AS-AD model, money is neutral in the
A) short run.
B) long run.
C) both of the above.
D) neither of the above.

Question

Quizplus · Accepted Answer

In the AS-AD (Aggregate Supply-Aggregate Demand) model, money is considered neutral in the long run. This means that changes in the money supply do not affect real variables such as output or employment in the long run, but can influence nominal variables like the price level.

According to the AS-AD Model, Money Is Neutral in the