In the Aggregate Demand/aggregate Supply Framework

question 11

Multiple Choice

In the aggregate demand/aggregate supply framework

• A) neither expansionary fiscal nor expansionary monetary policy has a permanent impact On the natural level of income and employment.
• B) only monetary policy has a long-run impact on income and unemployment under Flexible exchange rates.
• C) only fiscal policy has a long-run impact on income and employment under flexible Exchange rates.
• D) only monetary policy has a short-run impact on income and employment under fixed Exchange rates.

---

Definitions:

Perception

The process by which sensations are organized into an inner representation of the world.

Menstrual Cycle

The regular natural change that occurs in the female reproductive system that makes pregnancy possible.

Estrogen

A group of hormone compounds mainly responsible for the development and regulation of female sex characteristics and reproductive functioning.

Testosterone

A primary male sex hormone that plays key roles in the development of male reproductive tissues, secondary sexual characteristics, and the regulation of libido.