If the economy is in the vertical portion of the aggregate supply curve,an increase in the money supply in the long run will

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Quizplus · Accepted Answer

When the economy is in the vertical portion of the aggregate supply curve, it means that the economy's output is at its maximum potential level, and any increase in demand will only cause an increase in the price level. Therefore, an increase in the money supply will cause an increase in demand, and only result in higher prices, without affecting output levels.

If the Economy Is in the Vertical Portion of the Aggregate