Final answer:
The aggregate demand and aggregate supply model suggests that monetary changes do not affect real variables in the long run, implying monetary neutrality during that period.
Step-by-step explanation:
The aggregate demand and aggregate supply model implies monetary neutrality in the long run. Monetary neutrality means that changes in the money supply do not affect real variables like output in the long run. In the short run, sticky wages and prices can cause variations in real GDP as the aggregate demand shifts. However, eventually, wages and prices adjust, making the short-run aggregate supply (SRAS) curve shift until the economy reaches a new equilibrium at potential output. This reflects a synthesis of Keynesian and neoclassical perspectives, where aggregate demand primarily affects the economy in the short run, but in the long run, aggregate supply prevails and the economy returns to its potential level of output, demonstrating the neutrality of money over time.