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Stabilization Policy - Coggle Diagram

- - - - This will raise output outwards in short fun
        
        Prices will rise in the long run
    - - Decreasing money supply ( monetary policy)
        
        Stabilizes AD demand and prices will not rise in the long run
- - - - If AG demand is unchanged, this will cause AG supply curve to shift upward
        
        Causing prices to rise and output to fall
    - - Increasing money supply helps economy afford the same amount of output
        
        Accommodative monetary policy: Raising the money supply permanently raises price levels.