Money is neutral in the long run but not in the short run.

Name: Money is neutral in the long run but not in the short run.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Money is considered neutral in the long run because changes in the quantity of money only affect the price level and not the real output or employment. However, in the short run, changes in the quantity of money can affect both the price level and real output or employment, making money non-neutral in the short run.

Money Is Neutral in the Long Run but Not in the Short