The proposition that the amount of goods and services produced in an economy in the long run is not affected by the price level is known as the ________.
A)neutrality of money
B)classical dichotomy
C)quantity theory of money
D)Fisher effect
E)none of the above

Question

Quizplus · Accepted Answer

The classical dichotomy is the proposition that real variables, like the amount of goods and services produced, are not affected by nominal variables, like the price level, in the long run.

The Proposition That the Amount of Goods and Services Produced