How will this affect output and unemployment in long run

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Reference no: EM13153062

Suppose that, in an economy initially at full-employment, the central bank increases the money supply.

a) How will this affect output and unemployment in the short run?

b) How will this affect output and unemployment in the long run?

c) Use an AS-AD graph to show the transition from the short run to the long run.

Reference no: EM13153062

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