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[Solved]: 9 . Money Supply Suppose an economy is in long-run
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(Solved): 9 . Money Supply Suppose an economy is in long-run equilibrium. The central bank raises the money su ...



9 . Money Supply Suppose an economy is in long-run equilibrium. 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 short-run equilibrium.



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