Multiple Choice
Starting from an initial equilibrium with a recessionary gap,what effect would a shift to more expansionary monetary policy tend to have?
A) Increased prices and unemployment in the long run.
B) Increased real output in both the long run and the short run.
C) Increased real output in the long run but not the short run.
D) Increased real output in the short run but not in the long run.
Correct Answer:
Verified
Correct Answer:
Verified
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