In the long run in a model with sticky prices, a monetary surprise affects labour demand and real output.

Name: In the long run in a model with sticky prices, a monetary surprise affects labour demand and real output.
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Quizplus · Accepted Answer

In the long run, prices are flexible, and monetary surprises do not affect real output or labor demand, as the economy returns to its natural level of output and employment.

In the Long Run in a Model with Sticky Prices