Multiple Choice
In the aggregate demand/aggregate supply framework
A) neither expansionary fiscal nor expansionary monetary policy has a permanent impact On the natural level of income and employment.
B) only monetary policy has a long-run impact on income and unemployment under Flexible exchange rates.
C) only fiscal policy has a long-run impact on income and employment under flexible Exchange rates.
D) only monetary policy has a short-run impact on income and employment under fixed Exchange rates.
Correct Answer:
Verified
Correct Answer:
Verified
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