How will expansionary monetary policy affect the factors
What impact will an unanticipated increase in the money supply have on the real interest rate, real output, and employment in the short run? How will expansionary monetary policy affect these factors in the long run? Explain.
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Compare the impact of the unexpected shift to more expansionary monetary policy under rational and adaptive expectations.
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Compute the rate of growth across year by taking (new amount of M1- old amount of M1)/old amount of M1). Given the state of economy.
What impact will the unanticipated increase in money supply have on real interest rate, real output, and employment in short run?
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