Although money is neutral in the short run,it's possible that changes in money supply can change real GDP in the long run.

Question

Quizplus · Accepted Answer

In the long run, changes in the money supply are neutral with respect to real variables like real GDP, according to the classical dichotomy. In the long run, money is neutral, meaning changes in the money supply only affect nominal variables (like the price level) and have no effect on real variables.

Although Money Is Neutral in the Short Run,it's Possible That