Question: The main difference between the classical model of the price level and the modern understanding of the relationship between the money supply, the price level,

The main difference between the classical model of the price level and the modern understanding of the relationship between the money supply, the price level, and real gross domestic product is that, according to classical economists, economists

the adjustment of prices to changes in the money supply is instantaneous; argue that this adjustment process takes some time.

the adjustment of prices to changes in aggregate demand takes some time; expect this adjustment to be instantaneous.

money is not neutral in the long run; consider money to be neutral in the long run.

money is neutral in the long run; do not consider money to be neutral in the long run.

The main difference between the classical model

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