When the real quantity of money supplied equals the real quantity of money demanded,there is said to be

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When the real quantity of money supplied equals the real quantity of money demanded, it leads to asset market equilibrium, as the supply and demand for money as an asset is in balance. Goods market equilibrium refers to the balance between the supply and demand of goods and services. Monetary neutrality implies that changes in the money supply have no effect on real economic variables like output and employment. Money illusion refers to the tendency for individuals to mistake nominal changes for real changes, and is not related to the balance between the supply and demand for money.

When the Real Quantity of Money Supplied Equals the Real