Question: [7 points] Use the IS-LM model (diagram) to analyze the impact of a rise in Money Supply over time (from SR to LR). Assume that

[7 points] Use the IS-LM model (diagram) to analyze the impact of a rise in Money Supply over time (from SR to LR). Assume that the economy starts in general equilibrium (GE).Along with your diagram provide a detailed intuitive discussion [as done in lecture] of the impact on the whole economy. (Clearly label the diagram to illustrate SR vs. LR movements)

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