Which of the Following Influence the Slope of the Policy

question 12

Multiple Choice

Which of the following influence the slope of the policy frontier?

• A) How effective fiscal policy is in manipulating actual GDP in the short run without generating price and wage effects
• B) The degree to which adjustments in fiscal policy designed to manipulate actual GDP in the short run are reflected in changes in prices and wages
• C) How effective monetary policy is in manipulating actual GDP in the short run without price and wage effects
• D) The degree to which adjustments in monetary policy designed to manipulate actual GDP in the short run are reflected in changes in prices and wages
• E) Any, and perhaps all, of the above depending on circumstances

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