he classical model is appropriate for analysis of the economy in the Answer long run, since evidence indicates that money is not neutral in the long run. long run, since real and nominal variables are essentially determined separately in the long run. short run, provided money is not neutral. short run, provided real and nominal variables are highly intertwined.
he classical model is appropriate for analysis of the economy in the Answer long run, since evidence indicates that money is not neutral in the long run. long run, since real and nominal variables are essentially determined separately in the long run. short run, provided money is not neutral. short run, provided real and nominal variables are highly intertwined.
Chapter16: Monetary Policy
Section16.A: Policy Disputes Using The Self Correcting Aggregate Demand And Supply Model
Problem 15SQ
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Question
he classical model is appropriate for analysis of the economy in the
Answer
long run, since evidence indicates that money is not neutral in the long run.
long run, since real and nominal variables are essentially determined separately in the long run.
short run, provided money is not neutral.
short run, provided real and nominal variables are highly intertwined.
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