According to Phelps and Friedman,in the short run,an increase in the money supply

Name: According to Phelps and Friedman,in the short run,an increase in the money supply
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Question

Quizplus · Accepted Answer

In the short run, an increase in the money supply can lead to an increase in spending and aggregate demand, which can lead to higher prices. However, it can also stimulate production and hiring, which in turn can lead to lower unemployment. Therefore, the correct answer is that it raises prices and reduces unemployment.

According to Phelps and Friedman,in the Short Run,an Increase in the Money