Illustrate the long-run effect of increase in money supply


Problem

In the diagram, sketch a line showing long-run aggregate supply at a potential output of $10 trillion. Sketch in an aggregate demand curve and identify the price level. Illustrate the long-run effect of an increase in the money supply.

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Macroeconomics: Illustrate the long-run effect of increase in money supply
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