Using the DD-AA Framework, Which One of the Following Statements

question 46

Multiple Choice

Using the DD-AA framework, which one of the following statements is the MOST accurate?

• A) Only monetary policy can bring the economy to full employment.
• B) Only fiscal policy can bring the economy to full employment.
• C) Only both monetary and fiscal policies can bring the economy to full employment.
• D) Both policies are capable of bringing the economy to full employment and low inflation.
• E) Monetary policy by itself or fiscal policy by itself can bring the economy to full employment.