3 Long-run effects of an increase in M LRAS An increase in M shifts the AD curve to the right. In the long run, P this increases the price level. P AD2 AD .but leaves output the same. CHAPTER 9 Introduction to Economic Fluctuations slide 15 slide 15 Y P AD1 AD2 LRAS Y An increase in M shifts the AD curve to the right. P1 In the long run, P2 this increases the price level. .but leaves output the same. 3