An increase in the money supply causes output to rise in the long run.
This statement is true.
Any increase done by the government in the money supply will be inflationary for the economy when it is studied in contrast to the unemployment.
In general, it can be concluded that an increase in the money supply will always raise the domestic price level to a larger degree in the long run and by this the unemployment rate of labor and capital will be lowered.
An increase in the money supply will raise the national output more and the price level lesser than the rate at which the higher is the unemployment rate of labor and capital is.
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