The idea that the money supply does NOT affect real economic variables is called:

Question

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Monetary neutrality is the idea that changes in the money supply only affect nominal variables such as prices and nominal GDP, but not real economic variables such as output and employment. This theory suggests that monetary policy can only have short-term effects on real economic activity and in the long run, the economy will return to its natural level of output regardless of changes to the money supply. This is based on the assumption of flexible prices and wages, where changes in the money supply only affect the price level and not the level of real economic activity.

The Idea That the Money Supply Does NOT Affect Real