Reference: Ref 20-6 (Figure: AD, AS Diagram) Suppose this country begins at equilibrium and experiences an increase in money supply. a. What is the short-run effect on net exports, and how would the country's position on the above graph change? Show your answer graphically. b. If this country does not subsequently engage in monetary policy to counter this development, what will happen to the economy in the long run? Show your answer graphically.

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The Answer of  Reference: Ref 20-6 (Figure: AD, AS Diagram) Suppose this country begins at equilibrium and experiences an increase in money supply. a. What is the short-run effect on net exports, and how would the country's position on the above graph change? Show your answer graphically. b. If this country does not subsequently engage in monetary policy to counter this development, what will happen to the economy in the long run? Show your answer graphically.

Reference: Ref 20-6 (Figure: AD, AS Diagram) Suppose This Country