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Fiscal and Monetary Policy, Along with the Economic Environment

Question 7

Multiple Choice

Fiscal and monetary policy, along with the economic environment,

A) set the level of aggregate supply and move the economy along the Phillips curve, raising and lowering inflation and unemployment.
B) set the level of planned expenditure and move the economy along the Phillips curve, raising and lowering inflation and unemployment.
C) set the level of aggregate supply and move the economy along the monetary policy reaction curve, raising and lowering inflation and unemployment.
D) set the level of planned expenditure and move the economy along the planned expenditure curve, raising and lowering inflation and unemployment.

Correct Answer: