Which of the following statements is false with regard to the effect of macroeconomic policies?
A)they generally cause shifts in the aggregate demand curve
B)they can possibly increase long-run growth
C)they can help correct supply shocks that increases production costs but only at the expense of even higher inflation
D)they always cause shifts in the long-run aggregate supply curve

Question

Quizplus · Accepted Answer

Macroeconomic policies do not always cause shifts in the long-run aggregate supply curve. It depends on the type of policy and its effectiveness in improving productivity and potential output in the long run.

Which of the Following Statements Is False with Regard to the Effect