If the economy is at potential output and the Fed increases the money supply, run real GDP will likely remain the same in the short run.

Name: If the economy is at potential output and the Fed increases the money supply, run real GDP will likely remain the same in the short run.
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Increasing the money supply when the economy is at potential output typically leads to inflation rather than an increase in real GDP in the short run, as demand exceeds the economy's capacity to produce.

If the Economy Is at Potential Output and the Fed