Assume you are a monetarist and believe in a self regulating economy. What happens to the economy when velocity and/or the money supply increases?a. the AD curve shifts to the right. The economy may now find itself in an inflationary gap, eventually shifting the SRAS left until the economy is back at natural real gdpb. the AD curve shifts to the left. The economy may now find itself in an recessionary gap, eventually shifting the SRAS right until the economy is back at natural real gdpc. nothing happens bc the monetarists believe that money supply and velocity stay constantd. none of the above

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