In the long run, when the economy is at full employment, any change in money supply

Name: In the long run, when the economy is at full employment, any change in money supply
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Question

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When the economy is at full employment, any increase in the money supply will lead to an increase in aggregate demand. As firms try to meet the increased demand for goods and services, they will respond by increasing their prices. Therefore, any change in the money supply will lead to a change in prices.

In the Long Run, When the Economy Is at Full