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.
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Based on the model, the competitive price level is
Consider the following model for the production of refined oil: MSC = 10 + 0.5Q; MEC = 0.3Q; MSB = 30 – 0.3Q; MEB = 0. a. PC = $18 b. PC = $20 c. PC = $25 d. PC = $40
A cost that arises from the production or consumption that falls on someone other than the producer or consumer is called
A) a negative benefit. B) a public choice impact. C) a positive externality. D) a negative externality. E) a private good.
What are the three main exchange rate systems, and how do they operate?
What will be an ideal response?
The Fed can directly lower the inflation rate
Indicate whether the statement is true or false