Ifthe central bank suddenly increases the money supply then, according to the AS/AD model 1.In the short run output will rise and in the long…

Ifthe central bank suddenly increases the money supply then, according to the AS/AD model 1.In the short run output will rise and in the long….

1. In the short run output will rise and in the long run prices will rise.

2. In the short run output will fall and in the long run prices will fall.

3. In the short run output will rise and in the long run prices will fall.

4. In the short run output will fall and in the long run prices will rise.

Ifthe central bank suddenly increases the money supply then, according to the AS/AD model 1.In the short run output will rise and in the long…