According to classical macroeconomic theory, changes in the money supply change nominal but not real variables.

Name: According to classical macroeconomic theory, changes in the money supply change nominal but not real variables.
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Classical macroeconomic theory posits that changes in the money supply affect nominal variables (such as prices and wages) but do not have long-term effects on real variables (such as real GDP or unemployment), due to the neutrality of money in the long run.

According to Classical Macroeconomic Theory, Changes in the Money Supply