The economic system is currently in long-run equilibrium. If the central bank increases the money supply, in the long operated the price level will be raised. The reason of increase in price level is the increase in national output level.
When an economy is said to be in long run equilibrium, Real GDP is at its productive capacity, the number of unemployed equals the natural rate of unemployment, it could be approximately 6% and the overall price level equals the expected price level.
Thus, the money supply, in the long operated the price level will be raised.
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