Monetary policy is more effective at combating real shocks than AD shocks.

Name: Monetary policy is more effective at combating real shocks than AD shocks.
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Monetary policy is generally more effective at combating aggregate demand (AD) shocks than real (supply-side) shocks, because it directly influences demand through interest rates and money supply, whereas real shocks often require adjustments in production, technology, or resources that monetary policy cannot directly address.

Monetary Policy Is More Effective at Combating Real Shocks Than