At first, the equilibrium is at natural level. If there is a decrease in the velocity...

At first, the equilibrium is at natural level. If there is a decrease in the velocity of money, what are the short-run and long-run effects of the change on an economy with a horizontal aggregate supple, a vertical aggregate supple and the aggregate demand derived from the quantity equation (MV=PY)? What can the central bank do to keep the price at the initial level? I need details, too, please.

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Rahul Sunny answered 2 years ago

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