Money supply

CFA Level I Economics
#1

Hi,

i found this question:

in the short run equilibrium, will an increase in money supply increase both price and real output.The answer is it will increase both.

But according to the money supply equation, MV=PY, don’t we assume that V and Y will remain constant. Thus, increase in money supply will just increase the price level.

What am I missing here?

#2

A boost in the money supply will shift the LM curve to the right, and creteris paribus, real GDP will grow.

Short-term is key here.