Monetary Neutrality Implies That in the Long Run

question 149

Multiple Choice

Monetary neutrality implies that in the long run:

• A) monetary policy does not affect the level of economic activity.
• B) long-run aggregate supply depends on monetary policy.
• C) changing the money supply does not affect the aggregate price level.
• D) aggregate demand is independent from monetary policy.

---

Definitions:

Country of Origin

The country where a product was manufactured or produced, often used in trading and customs for determining tariffs and indicating quality.

Manufacturer

A company that produces goods in large quantities.

Hydraulic Cylinders

Actuators that convert hydraulic fluid pressure into linear motion, used in a variety of machinery and equipment for lifting, pushing, or pulling.

Concrete

A construction material composed of cement, water, aggregates, and sometimes admixtures, used for building a wide variety of structures.