Question: Define monetary neutrality. Show that after prices adjust completely, money is neutral in the IS-LM model. What are the classical and Keynesian views about whether
Define monetary neutrality. Show that after prices adjust completely, money is neutral in the IS-LM model. What are the classical and Keynesian views about whether money is neutral in the short run? in the long run?
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There is monetary neutrality if a change in the nominal money supply cha... View full answer
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