Ayushi Asked a Question
August 25, 2020 11:41 pmpts 30 pts
48. If the ccosony is operating at potential GDP, an incroase in the money supply will lead to (1) Stagflation (2) Structural inflation (3) Demand-siae inilation () Supply-side inflaion
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  • Nidhi taparia Best Answer
    I personally believe the answer is (3). This is because AD will rise due to increase in money supply or expansionary monetary policy. AS being constant, this will lead to demand pu...
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