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In the Aggregate Demand/aggregate Supply Framework

Question 3

Multiple Choice

In the aggregate demand/aggregate supply framework


A) neither expansionary fiscal nor expansionary monetary policy has a permanent impact On the natural level of income and employment.
B) only monetary policy has a long-run impact on income and unemployment under Flexible exchange rates.
C) only fiscal policy has a long-run impact on income and employment under flexible Exchange rates.
D) only monetary policy has a short-run impact on income and employment under fixed Exchange rates.

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