If the Federal Reserve uses expansionary monetary policy there is a _____ short-run effect on _____, but_____.
A) negative short-run; real GDP; prices remain unchanged in the long run.
B) positive short-run; real GDP; GDP remains equal to potential GDP in the long run.
C) t positive long-run; real GDP; GDP remains unchanged at its potential level in the short run.
D) positive short-run; the price level; the aggregate price level remains unchanged in the long run.
Correct Answer:
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