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If the central bank increases the money supply by 2% for an economy operating at a constant level of full employment, according to the quantity
If the central bank increases the money supply by 2% for an economy operating at a constant level of full employment, according to the quantity theory of money, (2 points) the real GDP will increase in the long run by 2% the price level will increase by 2% the unemployment rate will decrease by 2% the velocity of money will increase by 2% the long-run aggregate supply curve (LRAS) will shift right
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