If the economy is at potential output and the Bank of Canada increases the money supply,real GDP will likely remain the same in the short run.

Name: If the economy is at potential output and the Bank of Canada increases the money supply,real GDP will likely remain the same in the short run.
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Increasing the money supply typically lowers interest rates, which can boost investment and consumption, leading to an increase in real GDP in the short run, even if the economy is at potential output.

If the Economy Is at Potential Output and the Bank