What are the consequences of an increase in the money supply on output and the price level?

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What are the consequences of an increase in the money supply on output and the price level? Does your answer depend on where the economy starts (whether it is in long-run equilibrium or not)?

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Microeconomics An Intuitive Approach with Calculus

ISBN: 978-0538453257

1st edition

Authors: Thomas Nechyba

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Question Posted: Mar 05, 2018 11:12 AM

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What are the consequences of an increase in the money supply on output and the price level?

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From the Classical Dichotomy we know that this change in the money supply will not in the long run change any real variables Therefore real GDP the re...View the full answer

Microeconomics An Intuitive Approach with Calculus

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