The long-run effect of an increase in the money supply when starting from full employment is to

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In the long run, an increase in the money supply, when starting from full employment, primarily affects the price level by causing inflation, without having a lasting impact on real GDP. This is because, in the long run, the economy's output is determined by its productive capacity (factors of production) rather than the amount of money in circulation.

The Long-Run Effect of an Increase in the Money Supply