How does the federal control the quantity of money

Reference no: EM13877285

How does the Federal control the quantity of money (money supply) to increase inflation andlevel of employment using monetary base as an instrument when the economy is currently belowfull employment? Please explain all possible cases. Please show graphically and explain therelationship among money market, AE model, AD-AS model and Phillips curve Modelrespectively.

Reference no: EM13877285

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