Explain how does the long-run neutrality come

Reference no: EM13234768

Monetarists believe that changes in the money supply will have no effect on real income in the long-run. In other words, they believe that money is ‘neutral' in the long-run. How does this long-run neutrality come about (hint: Phillips curve) and what does it mean to say that money is ‘neutral'

Reference no: EM13234768

Questions Cloud

How wikimedia foundation meet criteria for knowledge create : How does the Wikimedia Foundation meet the criteria for a knowledge-creating organization

Find how much l and how much k should labor use : Suppose that the w=1, r=4 and the production function is given by: Q = K1/3L2/3. This means that the . Suppose that the w=1, r=4 and the production function is given by: Q = K1/3L2/3. This means that the marginal product of labor

Evaluate the ph of a solution prepared by dissolving : Calculate the pH of a solution prepared by dissolving 18.32 grams of benzoic acid and 43.23 grams of sodium benzoate in water sufficient to yield 1.00 L of solution.

What are the key technologies the internet is based on : The Internet and the Web are not the same thing. What is the difference between the Internet and the Web? Let's discuss what the Internet is and how many kinds of traffic, including Web traffic, can run on the Internet. What are the key technologi..

Explain how does the long-run neutrality come : Monetarists believe that changes in the money supply will have no effect on real income in the long-run. In other words, they believe that money is ‘neutral' in the long-run. How does this long-run neutrality come about

What percentage of the original energy is lost : A power line 50km long has a total resistance of 0.60ohm, What percentage of the original energy is lost when the transformer is not used

Discuss the advantages of some of the current technologies : Discuss the advantages of some of the current technologies including VoIP, Unified Communications, Virtual Private Networks, Wi-Fi and wireless technologies like RFID and Wireless Sensor Networks. Are there risks associated with any of these to..

Explain what mass of solid sodium fluoride : What mass of solid sodium fluoride (molar mass = 41.99 g/mol) should be added to 1.0 L of 0.23M hydrofluoric acid to make a buffer with a pH of 2.94? (Ka of HF = 1.36 x 10-3)

A brief critical review of the key academic sources : A brief critical review of the key academic sources you would use, outlining the main issues raised by these sources and how they support your aims and objectives. Do not just describe the literature

User Account

All Pages