Of the Five Endogenous Variables in the Dynamic Model of Aggregate

question 8

Multiple Choice

Of the five endogenous variables in the dynamic model of aggregate demand and aggregate supply, which two real variables do not depend on monetary policy in long-run equilibrium?

• A)Y_t and π_t
• B)i_t and r_t
• C)E_tπ_{t + 1} and π_t
• D)Y_t and r_t

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