What Do Most Economists Believe Concerning the Relation Between the Price

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The Answer is Most economists believe that in the long run, real variables are not affected by nominal variables. So, for example, changes in the money supply do not change real variables in the long run. However, most economists believe that nominal variables do change real variables in the short run. In the short-run prices and wages may be fixed based on the expected price level. If the actual price level differs from the expected price level, real variables are affected.

What Do Most Economists Believe Concerning the Relation Between the Price

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