Multiple Choice
Suppose the economy is in long-run equilibrium at the level of potential output. What will be the long-run effect of an expansionary monetary policy?
A) a higher price level
B) a higher level of real output
C) both a higher price level and a higher level of real output
D) a lower price level
E) a lower level of real output
Correct Answer:
Verified
Correct Answer:
Verified
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