Answer to Question #226593 in Macroeconomics for Mariam

Question #226593

In the context of Money Surprise Model, suppose that there was an unanticipated increase in the money supply. With the use of diagrams, explain in your own words the effects of the sudden increase in money supply on employment, the real wage, output, real interest rate, demand for money and the price level.

Expert's answer

The effect of increase in money supply on employment is as folliws

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