Question: Using the AA-DD framework, analyze the effects of a temporary increase in money supply. Compare the impact of this increase to one that is perceived

Using the AA-DD framework, analyze the effects of a temporary increase in money supply. Compare the impact of this increase to one that is perceived as permanent. [b] Assuming the economy began at its long-run, potential output. Describe the long-run adjustment to a permanent increase in the money supply. Illustrate using the AA-DD framework and clearly describe the adjustment process.

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