If economists say that monetary policies cannot affect GDP in the long run, what do they mean? O a. Monetary policy will change potential output and inflation by equal amounts O b. Only fiscal policies can affect potential output О с. Workers and firms have money illusion O d. Workers and firms have no money illusion
If economists say that monetary policies cannot affect GDP in the long run, what do they mean? O a. Monetary policy will change potential output and inflation by equal amounts O b. Only fiscal policies can affect potential output О с. Workers and firms have money illusion O d. Workers and firms have no money illusion
Chapter14: Macroeconomic Policy: Tradeoffs, Expectations, Credibility, And Sources Of Business Cycles
Section: Chapter Questions
Problem 6E
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![If economists say that monetary policies cannot affect GDP in the long run, what do they mean?
O a. Monetary policy will change potential output and inflation by equal amounts
O b. Only fiscal policies can affect potential output
O C. Workers and firms have money illusion
O d. Workers and firms have no money illusion](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2a9f1f77-996d-4872-99b9-7512aca31a68%2Fe22fc88b-c8e2-4d16-86d6-9521f052a64d%2F4uin359j_processed.jpeg&w=3840&q=75)
Transcribed Image Text:If economists say that monetary policies cannot affect GDP in the long run, what do they mean?
O a. Monetary policy will change potential output and inflation by equal amounts
O b. Only fiscal policies can affect potential output
O C. Workers and firms have money illusion
O d. Workers and firms have no money illusion
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