Separation of real variables and nominal variables

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Explaining short-run economic fluctuations Most economists believe that real economic variables and nominal economic variables behave independence to each other in the long run. For example, an increase in the mone‘yr supply, a V variable, will cause the price level, a V variable, to increase but will have no long-run e?'ect on the quantity of goods and servioes the economy can produce, a V variable. The separation of real variables and nominal variables is known as v .

Reference no: EM131457288

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