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Posted: **Thu May 26, 2022 7:46 am**

: 4 Marks Suppose We Are In The Long Run And The Aggregate Price Level Is Flexible Using The Fisher Question In The Mon 1 (18.32 KiB) Viewed 12 times

[4 marks] Suppose we are in the long run and the aggregate price level is flexible. Using the Fisher question in the money market equilibrium condition M/P-L(Y,i), as in (c), explain how an increase in expected inflation (everything else constant) will affect the aggregate price level.