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If a central bank pursues an expansionary monetary policy: real GDP will increase, but the aggregate price level will remain unchanged in the long run.

If a central bank pursues an expansionary monetary policy:

real GDP will increase, but the aggregate price level will remain unchanged in the long run.

the aggregate price level and real GDP will increase in the short run.

the aggregate price level will increase and real GDP will decrease in the short run.

nominal prices and nominal wages will remain unchanged in the long run.

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