The Policy Irrelevance Proposition Implies That

Multiple Choice

The policy irrelevance proposition implies that

A) unanticipated monetary policy actions are equally effective in stimulating both aggregate demand and aggregate supply.
B) anticipated monetary policy actions are effective in stimulating aggregate supply, but they are not effective in stimulating aggregate demand.
C) anticipated monetary policy actions are effective in increasing real GDP, but they do not reduce unemployment.
D) anticipated monetary policy actions are ineffective in generating changes in real GDP.