 propagating the effects of unanticipated changes in the money supply. So, we have seen that money is not neutral, it is empirically evident, and classical, then we reconcile it with the misperception theory. But it does not seem like people could be fooled for long, since money supply figures are reported weekly and inflation is reported monthly. Since this data is very quickly available, the money supply is also available for the public and the prices are also available, then it cannot be justified if people misperceive the theory of theory. Classical economists argue that propagation mechanism allows short-lived shocks to have long-lived effects. So, they argue that unanticipated changes in money supply figures and prices will be available very quickly, then people will revise their perceptions. So, they argue that unanticipated changes in money supply figures will have long-lived effects. So, classical economists argue that unanticipated changes in money supply figures will have long-lived effects. Why does it happen? Propagation mechanism gives justification for unanticipated changes in money supply figures. For example, they explain the behavior of the firms with the help of inventories. The firm holds a normal level of inventories against their normal level of sales. In the routine, the firm adjusts their normal sales and inventory levels. An unanticipated increase in the money supply increases sales, but when the unexpected increase in the money supply increases, what are the two options to meet the unanticipated increase in sales? One is to increase production, and the other option is to increase things from inventories. So, it is usually costly to increase production in the short-term. So, firms use both options to increase production in the short-term, and the other option is to reduce inventories in the short-term. So, even after the money supply change is known, it was unanticipated and the firm misperceived the unanticipated increase in demand. So, what did the firm do? It increased production to fulfill the demand, but it also reduced it in its inventories. So, when the misperception is over, it will come back to routine and normal demand, but now the firm will keep its output more, because the normal level of inventory will be less. In order to maintain it, it will have to be increased in production. So, in this way, they justify that the short-lift will keep its impact, that is, when the misperception is over, the firm will keep its output more. So, thus the short-term monetary shock has a long-lift effect on the economy. So, if we read the text and the way we read it, we read the RBC theory first and then the misperception theory later, and then we collected both of them. But in fact, the misperception theory came first and then the RBC theory. Many classical economists moved away from the misperception theory because they were not convinced by its argument for monetary non-neutrality. In particular, the information lag in observing money and prices did not seem long enough to cause much effect. That the non-neutrality of money is justified on the basis of the misperception theory. This is a convincing argument, as I told you, that the data about money supply is readily available, that is why the misperception argument is not so convincing. So, finally, the misperception version, which is the aggregate demand and aggregate supply model, let's look at it again. We are looking at the horizontal axis, the vertical axis, the price, the long-run aggregate supply curve, the aggregate demand curve. So, this is the short-term aggregate supply curve on the intersection point H. So, P3 is your actual price level and expected price level. So, the expected price level is your P3, so this is your equilibrium. But this is a short-term supply curve. When the expected price level is P1, then what will happen in that direction? In the direction of P1, I said that people are expecting P1 price level. Okay? So, the actual price is more, then this intersection point, you will have F intersection point. That is, the people who were expecting the actual price is more, then people, like we read in the misperception theory, that people will understand that, if this has increased in our relative prices, then to take advantage of that, they will increase in production. So, the output will increase and the price level will also increase. But finally, the economy will come back to the H point when perceptions will be equal to the actual price. Okay, thank you very much.