If money is neutral in the long run, monetary policy can:
A) reduce short-run inflationary gaps and potential output.
B) cannot reduce short-run recessionary gaps but can change potential output.
C) reduce short-run inflationary and recessionary gaps by changing potential output.
D) reduce short-run inflationary and recessionary gaps but cannot change potential output.
Correct Answer:
Verified
Q92: What is the most serious criticism of
Q93: In the short run, if the central
Q94: The financial crisis and recession of 2008-2009
Q95: The long-run neutrality of money means:
A) money
Q96: The long-run neutrality of money means:
A) central
Q98: Consider the equation of exchange of MV
Q99: Monetary policy indicators:
A) provide information about the
Q100: If ?M/M is minus 1%, ?P/P is
Q101: The expansionary or restrictive thrust of monetary
Q102: The monetary conditions index published by the
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents