In the long run, an increase in the quantity of money does not change real GDP but it does raise the price level.

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Quizplus · Accepted Answer

This is known as the quantity theory of money. According to this theory, in the long run, changes in the quantity of money only lead to proportional changes in the price level, while real GDP remains the same. In other words, if the quantity of money increases by 10%, the price level will also increase by 10%, but real GDP will not be affected.

In the Long Run, an Increase in the Quantity of Money