Suppose that the money supply increases. In the short run, this increases prices according to
A) both the short-run Phillips curve and the aggregate demand and aggregate supply model.
B) neither the short-run Phillips curve nor the aggregate demand and aggregate supply model.
C) the short-run Phillips curve, but not according to the aggregate demand and aggregate supply model.
D) the aggregate demand and aggregate supply model but not according to the short-run Phillips curve.
Correct Answer:
Verified
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