Fiscal and Monetary Policies Typically Affect the Short- Run Level

Multiple Choice

Fiscal and monetary policies typically affect the short- run level of GDP because they cause shifts in the but they will not generally have any long- run effects on real GDP unless they affect .

A) AD curve; the level of potential output
B) AS curve; factor- utilization rates
C) AS curve; factor supplies or factor productivity
D) AD curve; factor- utilization rates
E) AD curve; the unemployment rate