Starting from an Initial Long-Run Equilibrium, an Unanticipated Shift to a More

question 154

Multiple Choice

Starting from an initial long-run equilibrium, an unanticipated shift to a more expansionary monetary policy would tend to increase

• A) prices and unemployment in the long run.
• B) real output in the short run but not in the long run.
• C) real output in the long run but not in the short run.
• D) real output in both the long run and the short run.

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