Generally, economists believe that monetary policy should focus on price stability in the _____ run and output or income in the _____ run.
A) long; short
B) long; long
C) short; short
D) short; long

Question

Quizplus · Accepted Answer

Economists generally believe that monetary policy should focus on price stability in the long run, as inflation can have negative effects on the economy over time. In the short run, however, they believe that monetary policy can influence output or income levels to help stabilize the economy during times of economic downturns or recessions.

Generally, Economists Believe That Monetary Policy Should Focus on Price