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Using the DD-AA Framework, Which One of the Following Statements

Question 46

Multiple Choice

Using the DD-AA framework, which one of the following statements is the MOST accurate?


A) Only monetary policy can bring the economy to full employment.
B) Only fiscal policy can bring the economy to full employment.
C) Only both monetary and fiscal policies can bring the economy to full employment.
D) Both policies are capable of bringing the economy to full employment and low inflation.
E) Monetary policy by itself or fiscal policy by itself can bring the economy to full employment.

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