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How does expansionary monetary policy affect short-run aggregate supply in the New Keynesian model? | Homework.Study.com
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Over time, contractionary monetary policy _____ nominal wages and causes the short-run aggregate supply curve to shift _____. a. raises; leftward b. lowers; leftward c. raises; rightward d. lowers; rightward | Homework.Study.com
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Using the aggregate demand-aggregate supply diagram, graphically illustrate and explain the impact of an expansionary monetary policy on the price level and real income in the long run. | Homework.Study.com
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