The graph below shows the long-run aggregate supply (LRAS), the short-run aggregate supply (SRAS), and aggregate demand (AD) curves for a given economy. Manipulate the curves to show the long run effect of an increase in money supply. LRAS 10 SRAS In the long run, an increase in the money supply will result in the following. Real GDP: 3 AD increases 1 decreases 2 4 5 6 7 8 10 Real GDP stays the same stays the same decreases increases 3. 7. 2. Aggregate price level

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