Economists argue that money is neutral in:

Question

Quizplus · Accepted Answer

Economists generally agree that while money may not have an impact on the economy in the long run, it does affect the price level. In the short run, changes in the money supply can have both real and nominal effects on an economy. However, in the long run, changes in the money supply are generally neutral and do not affect real economic variables such as employment and output. Nonetheless, in the long run money's effects on the price level is still significant.

Economists Argue That Money Is Neutral In