When the Economy Is Experiencing an Inflationary Gap,how Can Monetary

question 44

Multiple Choice

When the economy is experiencing an inflationary gap,how can monetary policy affect real output and the price level?

• A)A contractionary monetary policy can result in increased real output and a lower price level.
• B)A contractionary monetary policy can result in decreased real output and an increased price level.
• C)A contractionary monetary policy can result in decreased real output and a lower price level.
• D)A contractionary monetary policy can result in increased real output and an increased price level.

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