According to Keynesians, an increase in the money supply will have its greatest impact on GDP when the aggregate demand curve intersects:

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Keynesians argue that an increase in the money supply will have its greatest impact on GDP when the economy is operating below full capacity, which is represented by the horizontal portion of the aggregate supply curve. In this scenario, there is slack in the economy, and increases in aggregate demand can lead to increases in output without causing inflation.

According to Keynesians, an Increase in the Money Supply Will