If the supply of money increases, the long-run aggregate supply curve suggests that output will not change but prices will.

Name: If the supply of money increases, the long-run aggregate supply curve suggests that output will not change but prices will.
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Quizplus · Accepted Answer

In the long run, the aggregate supply curve is vertical, indicating that output is determined by factors like technology and resources, not by the money supply. An increase in the money supply affects prices, leading to inflation, but not output.

If the Supply of Money Increases, the Long-Run Aggregate Supply