A Core Belief of Modern Macroeconomics Is That in the Short

Multiple Choice

A core belief of modern macroeconomics is that in the short run:

A) fluctuations in aggregate demand have no impact on the price level.
B) fiscal policy is more effective in changing output than monetary policy.
C) the economy always operates at or near the natural rate of unemployment.
D) monetary policy is more effective in changing output than fiscal policy.
E) fluctuations in aggregate demand affect unemployment.