When the Economy Is Initially Above Full Employment,how Can Monetary

question 66

Multiple Choice

When the economy is initially above full employment,how can monetary policy affect real output?

• A)An expansionary monetary policy can potentially result in an increased price level.
• B)A contractionary monetary policy can potentially result in an increased price level.
• C)An expansionary monetary policy can potentially result in increased real output by shifting the LRAS.
• D)A contractionary monetary policy can potentially result in increased real output, but only in the short run.

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Definitions:

Democratic

Pertaining to a system of government or decision-making that is controlled by the majority of its members, often emphasizing equality and individual rights.

Laissez-faire

Laissez-faire is an economic doctrine or leadership style that promotes minimal to no government intervention in the free market, or a hands-off approach in management.

Big Five

A personality model identifying five major dimensions of human personality: openness, conscientiousness, extraversion, agreeableness, and neuroticism.

Personality Characteristics

Traits or qualities that define an individual’s distinctive characters, influencing their behaviors, thoughts, and emotions.