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1 In the short run, increases in the money supply increase the level of output because __________.

1 In the short run, increases in the money supply increase the level of output because __________.

1 In the short run, increases in the money supply increase the level of output because __________.prices and wages are stickyprices and wages are flexibleinterest rates are stickydemand is fixed2 A necessary condition for the classical model to work is that __________.wages and prices are fully flexibleprices, but not wages, are fully flexiblewages and prices are not fully flexiblewages, but not prices, are fully flexible

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