An economy is operating initially at its natural rate of unemployment.
According to monetarist theory, compared to the initial position, what will be the effect on unemployment in the short run and in the long run of an unanticipated increase in the money supply?
1 )
short run: no change / long run: no change
2 )
short run: no change / long run: reduction
short run: reduction / long run: no change
4 )
short run: reduction / long run: reduction
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