By shifting aggregate demand,monetary policy can affect ________ and ________.
A) real gross domestic product (GDP); unemployment
B) real GDP; interest rates
C) interest rates; unemployment
D) money supply; real GDP
E) money supply; unemployment

Question

Quizplus · Accepted Answer

Monetary policy affects aggregate demand, which in turn influences real GDP and unemployment. By altering interest rates, monetary policy can increase or decrease spending and investment, impacting economic output and employment levels.

By Shifting Aggregate Demand,monetary Policy Can Affect ________ and ________

By Shifting Aggregate Demand,monetary Policy Can Affect and