Multiple Choice
If aggregate supply meets aggregate demand in the vertical part of the AS curve,which of the following is a true statement about expansionary policies?
A) Monetary policy will be more effective in increasing output.
B) Fiscal policy will be more effective in increasing output.
C) Fiscal and monetary policy will be equally effective in increasing output.
D) Both monetary and fiscal policies will only cause prices to increase.
Correct Answer:
Verified
Correct Answer:
Verified
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