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Which of the following is correct in a closed economy, all other things remaining the same? An increase in money supply moves IS right, and LM right An increase in money supply moves IS right, and LM left G) A decrease in money supply moves LM left @ An increase in money supply moves LM left If an economy, which is at equilibrium, receives a positive fiscal shock you might expect this to: Q9 Rise prices and output in the long run Reduce prices and output in the short run Rise prices in the short run @ Raise real wages in the short run