2. a. Imagine that the economy was at the long run steady state level of growth and in economic equilibrium prior to a dramatic decrease in the money supply. Assume further that rm owners cannot immediately differentiate between changes in real and nominal prots. Further assume that population is growing at 2% per year and technology is growing at 1% per year. On the graphs below, plot the short- run and long-run effects of the increase in money supply. Label the order of the changes by placing the number 1 next to the rst change, the number 2 by the second, etc. (20) AE 45 C+I+G Y Ms r LM IS M/P Y PL LRAS SRAS AD Y