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Which of the Following Statements Is True

Question 29

Multiple Choice

Which of the following statements is true?


A) Monetary and fiscal policy can be used to affect unemployment rate in the short run but not in the long run.
B) Monetary policy can be used to affect unemployment rate in the short run, and fiscal policy can be used to affect unemployment in the long run.
C) Fiscal policy can be used to affect unemployment rate in the short run, and whole monetary policy can be used to affect the unemployment in the long run.
D) Both monetary and fiscal policy can be used to affect the unemployment rate in the short run and the long run.

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