We can use the aggregate demand and supply model to think about the long run as well as the short run.Using this framework, show the effects of (1) long-run growth in the money supply, and (2) long-run growth in GDP.Show that if the economy is growing, then the price level might fall over time even if the money supply is growing.

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The Answer of We can use the aggregate demand and supply model to think about the long run as well as the short run.Using this framework, show the effects of (1) long-run growth in the money supply, and (2) long-run growth in GDP.Show that if the economy is growing, then the price level might fall over time even if the money supply is growing.

We Can Use the Aggregate Demand and Supply Model to Think