Assume the economy is currently operating at the natural rate of unemployment, what effects will using the Expansionary Monetary Policy // "stimulating the economy" have in the LONG run on output, price level, and interest rates?  Please use the AS/AD and Money Market diagrams to illustrate your answer.

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Q: Is monetary policy effective in combating stagflation?

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A:

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Q: Assume the economy is currently operating at the natural rate of unemployment, what effects will…

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Q: can fiscal policies affect the money supply curve. if so please show on a money market graph?

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