Economists believe that persistent increases

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Economists believe that persistent increases in the money supply increase inflation and do not affect the long-term growth rate of the economy. Why?

Economists also believe that the Federal Reserve should change the money supply to reduce unemployment during a recession. Why?

Explain the apparent contradiction between part A (changes in the money supply do not affect the economy and part B (changes in the money supply do affect the economy.)

Reference no: EM132264115

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