Starting at full employment (RGDPNR),
a. expansionary monetary policy can potentially result in increased real output, but only in the short run
b. expansionary monetary policy can potentially result in increased real output in both the short run and long run.
c. contractionary monetary policy can potentially result in increased real output, but only in the short run.
d. contractionary monetary policy can potentially result in increased real output in both the short run and long run.
a
Economics
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Indicate whether the statement is true or false
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If the government cut expenditures during an expansion
a. it would have to raise the tax rate b. it would tend to stabilize the economy c. both a and b d. neither a nor b
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