Explain why, in the long run, a change in prices has no impact on output. What impactdoes aggregate demand have in determining output in the long run?

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Explain why, in the long run, a change in prices has no impact on output. What impactdoes aggregate demand have in determining output in the long run?
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Solution 1

In the long run, a change in prices does not impact output due to the concept of money neutrality. Money neutrality is an economic theory which suggests that changes in the money supply only affect nominal variables and not real variables. In other words, increasing or decreasing the amount of money Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study prob

Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solv

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