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Which of the Following Is FALSE in the Medium Run

Question 2

Multiple Choice

Which of the following is FALSE in the medium run?


A) a change in monetary policy can shift the AD-curve
B) a change in fiscal policy can shift the AD-curve
C) a change in fiscal policy can change output and prices
D) a change in monetary policy can change prices but not output
E) a change in labor productivity can shift the AS-curve

Correct Answer:

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