Assume that the economy starts from long-run equilibrium. If the Bank of Canada increases the money supply, then _____ increase(s) in the short run, and _____ increase(s) in the long run.
A)prices; output
B)output; prices
C)output; output
D)prices; prices

Question

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The Answer of Assume that the economy starts from long-run equilibrium. If the Bank of Canada increases the money supply, then _____ increase(s) in the short run, and _____ increase(s) in the long run.
A)prices; output
B)output; prices
C)output; output
D)prices; prices

Assume That the Economy Starts from Long-Run Equilibrium