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Monetary Neutrality
The economic theory suggesting that changes in the money supply only affect nominal variables and have no long-term effect on real variables such as output or employment.
Long-Run Aggregate-Supply Curve
The long-run aggregate-supply curve represents the total production of goods and services in an economy at different price levels, assuming all resources are fully utilized.
Misperceptions Theory
A theory suggesting that individuals' misperceptions about economic conditions can lead to fluctuations in economic output and employment.
Short-Run Aggregate Supply
The total quantity of goods and services that producers in an economy are willing and able to supply at current price levels in the short term.
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