In the long run in a model with sticky prices:

Name: In the long run in a model with sticky prices:
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In the long run in a model with sticky prices, prices will eventually adjust to reflect changes in the economy, making money neutral. This adjustment reverses the short-run effects of price changes, aligning with the classical dichotomy where nominal variables do not affect real variables in the long run.

In the Long Run in a Model with Sticky Prices