  Increase in
money supply

Expected price
  level rises

LRAS

SRAS²

SRAS¹

AD²

AD¹

Short run
equilibrium

Long-run 
equilibrium

Initial equilibrium

Anticipated

Unanticipated

New equilibrium

Effects of Anticipated vs Unaticipated Monetary Policy

Price level, P

Output, Y

A = Point(yAxis)
B = (8, 0)
C = Point(yAxis)
a = Segment(A, B)
b = Segment(A, C)
D = Point(a)
E = (4, 7)
c = Segment(D, E)
f = If(2.5 < x < 7, x - 1)
g = If(1.5 < x < 6, 7 - x)
h = If(1.5 < x < 6, x + 1)
p = If(3 < x < 7, 9 - x)
F = Point(c)
G = Point(c)
H = Point(p)
I = Point(g)
J = Point(p)
K = Point(f)
L = Point(h)
u = Vector(I, J)
v = Vector(K, L)
w = Vector(G, H)
z = Vector(H, F)
d = Vector(G, F)
e = false
i = false