The economy is initially at a medium-run equilibrium

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Suppose that the economy is initially at a medium-run equilibrium.

Then the Fed increases the money supply. Assuming that any resulting inflation is unexpected, explain any changes in GDP, unemployment, and inflation that are caused by the monetary expansion. Explain your conclusions using three diagrams: one for the IS-LM model, one for the AS-AD model, and one for the Philips curve

Reference no: EM13994449

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