Asked by Bailey Glover on Apr 28, 2024
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In the long run,increases in the money supply increase the economy's potential output level.
Money Supply
The complete collection of economic resources in money form available at a distinct period within an economy, which includes cash—both coins and notes—and amounts held in banking accounts for checking and savings.
Potential Output Level
The highest level of real gross domestic product (GDP) that can be sustained over the long term without increasing the rate of inflation.
- Comprehend the impact of monetary policy on total demand and real Gross Domestic Product.
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Learning Objectives
- Comprehend the impact of monetary policy on total demand and real Gross Domestic Product.
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