Explain short-run impact on price level and on real output.

Use one Aggregate Demand Short Run Aggregate Supply diagram to illustrate part A Show more Money and Banking Use one Aggregate Demand Short Run Aggregate Supply diagram to illustrate part A and use a different Aggregate Demand Short Run Aggregate Supply diagram to illustrate part B. Discuss only short-run impact. Label each axis on the diagrams and label each curve. Part A. Assume an increase in the nominal money supply. Explain short-run impact on price level and on real output. Part B. Assume a decrease in nominal wages. Explain short-run impact on price level and on real output. Part C. Explain what happens to the price level and to real output in the short run when Part A and Part B occurs simultaneously. That is increase in the nominal money supply and a decrease in nominal wages. (no diagram needed for this part just an explanation) Show less

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Approximately 250 words