The idea that aggregate price levels do not affect real outcomes in the economy is called:
A)the neutrality of money.
B)the aggregate price theory.
C)the neutrality of prices.
D)the real output theory.

Question

Quizplus · Accepted Answer

The idea that aggregate price levels do not affect real outcomes in the economy is known as the neutrality of money. It suggests that changes in the money supply only affect nominal variables (like prices and wages) and not real variables (like output and employment).

The Idea That Aggregate Price Levels Do Not Affect Real