Question
Most economists believe the principle of monetary neutrality is
a. irrelevant to both the short and long run.
b. mostly relevant to the short run.
c. relevant to both the short and long run.
d. mostly relevant to the long run.
a. irrelevant to both the short and long run.
b. mostly relevant to the short run.
c. relevant to both the short and long run.
d. mostly relevant to the long run.
Answers
GPT-4o mini
Most economists believe the principle of monetary neutrality is:
**d. mostly relevant to the long run.**
Monetary neutrality refers to the idea that changes in the money supply do not affect real variables (such as output and employment) in the long run, but may have short-run effects on these variables.
**d. mostly relevant to the long run.**
Monetary neutrality refers to the idea that changes in the money supply do not affect real variables (such as output and employment) in the long run, but may have short-run effects on these variables.