[经济学]Finance lecture 2.pptVIP

Copyright ? 2009 Pearson Addison-Wesley. All rights reserved. 14-* Money and Prices in the Long Run How does a change in the money supply cause prices of output and inputs to change? Excess demand of goods and services: a higher quantity of money supplied implies that people have more funds available to pay for goods and services. To meet high demand, producers hire more workers, creating a strong demand of labor services, or make existing employees work harder. Wages rise to attract more workers or to compensate workers for overtime. Prices of output will eventually rise to compensate for