Short-run effect on the price level

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Starting from an above full employment equilibrium, briefly explain with the aid of a diagram, the short-run effect on the price level and real GDP of an open market purchase of securities by the central bank. Does such an action lower real GDP in the long run?

Reference no: EM131808373

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Short-run effect on the price level : Starting from an above full employment equilibrium, briefly explain with the aid of a diagram, the short-run effect on the price level and real GDP

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