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Suppose an economy is in long-run equilibrium. b. The central bank raises the money supply by  5 percent. Use your diagram to show what happens to output and the price level as the economy moves from

Suppose an economy is in long-run equilibrium.

b. The central bank raises the money supply by  5 percent. Use your diagram to show what happens to output and the price level as the economy moves from the initial to the new shortrun equilibrium (call it point B)

Jul 19 2021 View more View Less

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