Suppose that money supply unexpectedly increases to 4488. Using theAD-AS model calculate the short run and medium run impacts of such anincrease in money supply. In particular calculate the short run and mediumrun equilibrium values of the price level, expected price, unemploymentand output.(Hint: You may need to use the following formula to solve a quadraticequation.If ax2 + bx +c = 0Then, the values of x can be calculated asab b acx24 2 ? ? ?? .)
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