monetary expansion is. while the long-run effect is A) higher output and prices; higher prices but no change in output

ENGR.ECONOMIC ANALYSIS
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Author:NEWNAN
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Chapter1: Making Economics Decisions
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4) Using the adaptive expectations version of the Keynesian AS/AD model, the short run effect of a
monetary expansion is.
A) higher output and prices; higher prices but no change in output
while the long-run effect is
B) higher output and lower prices; lower prices but no changein output
C) higher unemployment and inflation; no change in output or prices.
D) higher inflation only: higher output only
Transcribed Image Text:4) Using the adaptive expectations version of the Keynesian AS/AD model, the short run effect of a monetary expansion is. A) higher output and prices; higher prices but no change in output while the long-run effect is B) higher output and lower prices; lower prices but no changein output C) higher unemployment and inflation; no change in output or prices. D) higher inflation only: higher output only
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