Think about your answers from above. While there was a slight dip in the M$2$ money supply during $2022$ and $2023,$ overall the M$2$ money supply has dramatically increased over the last $30$ years.

This large increase can seem to drive some people a little crazy. However, most economists are not worried, due to their belief in a concept known as 'monetary neutrality'.

What is the concept of monetary neutrality?

$q,$

That M$2$ is a far more useful measure of money than M$1$

That low, steady increases in a nation's money supply don't have long$-$term impacts on real macroeconomic variables $($real GDP$,$ unemployment, etc.$)$

That paper $(\text{'}$fiat$\text{'})$ money plays no useful role in the workings of a modern nation's economy

That over the long term, a nation's real GDP and nominal GDP will be roughly equal

That ultimately the Federal Reserve has very little influence on the workings of an economy as large as the United States.