In the long run, what do changes in the money supply affect?
A) price level
B) output
C) unemployment rates
D) tax rates

Question

Quizplus · Accepted Answer

In the long run, changes in the money supply primarily affect the price level. According to the quantity theory of money, in the long run, a change in the money supply does not affect real variables like output or unemployment but influences the overall price level in the economy.

In the Long Run, What Do Changes in the Money