It is widely agreed that in the long run - after all adjustments in the economy have worked through, a change in the quantity of money in the economy will be reflected in a change in the general level of prices. But it will not induce permanent changes in real variables such as real output or unemployment.

Question

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This statement aligns with the classical dichotomy and the long-run neutrality of money, which suggest that changes in the money supply only affect nominal variables (like the price level) in the long run, not real variables (like real GDP or unemployment).

It Is Widely Agreed That in the Long Run -