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Answer This Question Based on the Diagram and the Equation

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  Answer this question based on the diagram and the equation of exchange. Assume that the velocity of money is constant at 4. Suppose that the increase of aggregate supply from A AS<sub>1</sub> to AS<sub>2</sub> indicates the economy's average increase in real output per year. According to monetarists, the proper monetary rule for price stability would be to increase the money supply by A)  zero percent per year. B)  4 percent per year. C)  10 percent per year. D)  30 percent per year.
Answer this question based on the diagram and the equation of exchange. Assume that the velocity of money is constant at 4. Suppose that the increase of aggregate supply from A AS1 to AS2 indicates
the economy's average increase in real output per year. According to monetarists, the proper monetary rule for price stability would be to increase the money supply by

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Altered States

Conditions of consciousness that are significantly different from the normal waking state, such as those induced by drugs, meditation, or sleep deprivation.

Consciousness

The state of being awake and aware of one's surroundings and identity, including thoughts, feelings, and perceptions.

Hallucinogenic Drug

A substance that induces alterations in perception, mood, and thought, often creating experiences that differ from objective reality.

Peyote

A small, spineless cactus with psychoactive alkaloids, notably mescaline, used primarily in Native American spiritual ceremonies.

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