Suppose policymakers wish to use fiscal policy to fight inflation.Which statement is MOST accurate?
A) Using fiscal policy,the government can have the best of both worlds in the form of low inflation and economic growth.
B) Essentially,the way to lower the inflation rate is to decrease aggregate demand and cause a recession.
C) They should not use fiscal policy because in the long run the economy will always go back to its equilibrium.
D) Policymakers should use an expansionary policy because jobs are more important than inflation.
Correct Answer:
Verified
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