Which of the following statements about monetary policy is correct?

a. Whatever happens with aggregate supply and aggregate demand in the long run, monetary policy can be used to prevent inflation from becoming entrenched in the economy in the short and medium term.
b. Whatever happens with aggregate supply and aggregate demand in the short run,
monetary policy can be used to prevent inflation from becoming entrenched in the economy in the medium and long term.
c. Whatever happens with aggregate supply and aggregate demand in the short and medium run, monetary policy can be used to prevent inflation from becoming entrenched in the economy in the long term.
d. Whatever happens with aggregate supply and aggregate demand in the medium and long run, monetary policy can be used to prevent inflation from becoming entrenched in the economy in the short term.


b. Whatever happens with aggregate supply and aggregate demand in the short run,
monetary policy can be used to prevent inflation from becoming entrenched in the economy in the medium and long term.

Economics

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