-In the above figure, if we start at and , and the money supply increases unexpectedly, what would be the short-run equilibrium even with rational expectations?

Question

-In the above figure, if we start at  and  , and the money supply increases unexpectedly, what would be the short-run equilibrium even with rational expectations?

Quizplus · Accepted Answer

The Answer of 
-In the above figure, if we start at  and  , and the money supply increases unexpectedly, what would be the short-run equilibrium even with rational expectations?

-In the Above Figure, If We Start at and