From an initial equilibrium in the basic model that includes the AD and LRAS curves only, an increase in money supply growth will cause inflation:

Name: From an initial equilibrium in the basic model that includes the AD and LRAS curves only, an increase in money supply growth will cause inflation:
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Quizplus · Accepted Answer

In the long run, an increase in money supply growth leads to higher inflation, but real growth remains unchanged as it is determined by factors like technology and resources, not monetary policy.

From an Initial Equilibrium in the Basic Model That Includes