If a central bank pursues an expansionary monetary policy:
A) the aggregate price level and level of real GDP will increase in the short run.
B) the level of real GDP will increase, but the aggregate price level will stay the same in the long run.
C) nominal prices and nominal wages will be unaffected in the long run.
D) the aggregate price level will increase and the level of real GDP will decrease in the short run.
Correct Answer:
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