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5.Draw the AA/DD model on a graph. Show on the graph the impact of a permanent increase in money supply. What is the impact on

5.Draw the AA/DD model on a graph. Show on the graph the impact of a permanent increase in money supply. What is the impact on the following variables:

a.Short-run output

b.Long-run output

c.Short-run interest rates

d.Long-run interest rates

e.Short-run exchange rates

f.Long-run exchange rates

g.Short-run prices

h.Long-run prices

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