Long run monetary neutrality implies that fiscal policy can only change output, not prices, in the long run monetary policy can change only nominal, not real, variables in the long run monetary policy can only change output, not prices, in the long run fiscal policy can change only real, not nominal, variables in the long run
Long run monetary neutrality implies that fiscal policy can only change output, not prices, in the long run monetary policy can change only nominal, not real, variables in the long run monetary policy can only change output, not prices, in the long run fiscal policy can change only real, not nominal, variables in the long run
Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter14: Modern Macroeconomics And Monetary Policy
Section: Chapter Questions
Problem 9CQ
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Long run monetary neutrality implies that
fiscal policy can only change output, not prices , in the long run
monetary policy can only change output, not prices, in the long run
fiscal policy can change only real, not nominal, variables in the long run
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