1. Why the slope of short-run aggregate supply cure matters? Why the long-run aggregate supply cure...

Question:

1. Why the slope of short-run aggregate supply cure matters? Why the long-run aggregate supply cure is vertical and might shift? Money neutrality states that a change in the money supply affects_ (real/nominal) variables only. Most economists believe that money neutrality is a good description of how money affects the economy in the __(short run/long run). 2. Suppose that a U.S. dollar buys more gold in Australia than it buys in Russia. What does purchasing-power parity imply should happen?