An expansionary monetary policy is likely to increase real output more than just temporarily:

Question

Quizplus · Accepted Answer

When the economy operates at less than capacity, there is room to increase real output in response to an expansionary monetary policy without generating excessive inflation. The policy can stimulate further investment and consumer spending, leading to sustained economic growth beyond just a temporary increase in output. However, when the economy is already at full employment or beyond its long-run capacity, expansionary monetary policy may contribute to inflationary pressures without increasing output in the long term.

An Expansionary Monetary Policy Is Likely to Increase Real Output