Which of the Following Statements Is False with Regard to the Effect

question 11

Multiple Choice

Which of the following statements is false with regard to the effect of macroeconomic policies?

• A)they generally cause shifts in the aggregate demand curve
• B)they can possibly increase long-run growth
• C)they can help correct supply shocks that increases production costs but only at the expense of even higher inflation
• D)they always cause shifts in the long-run aggregate supply curve

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Definitions:

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