Question 3
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Write My Essay For MeIn the Classical Model, an increase in the money supply does not affect the level of output or employment. Explain.
Question 4
In the Keynesian model, what are the forces that cause an economy to settle at an equilibrium level of GDP that does not ensure full employment? (Hint: Explain why the amount of savings will exceed the amount of investment at the full employment level of GDP).
Question 5
In the Austrian framework, an expansion of the money supply by the central bank causes an unsustainable boom in the economy that is followed by a bust. Explain. (Make use of the Hayekian Triangle if you think it is necessary).
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