Monetary policy affects which of the following variables in the long run?
A)the level of output
B)the rate of unemployment
C)the rate of inflation
D)the real interest rate
E) all of the above

Question

Quizplus · Accepted Answer

Monetary policy primarily affects the rate of inflation in the long run. While it can have short-term impacts on output, unemployment, and real interest rates, its long-term influence is on the price level or inflation rate.

Monetary Policy Affects Which of the Following Variables in the Long