If the long run macro aggregate supply curve is fixed and vertical, then after all is said and done (meaning all adjustments in the aggregate economy have occurred), discretionary fiscal and monetary policies are predicted to change ________________________. a) only the level of real aggregate output/income b) only the price level c) the price level under fiscal but not under monetary policy d) neither the price level nor the level real of aggregate output/income e) both the price level and the level of real aggregate output/income
If the long run macro aggregate supply curve is fixed and vertical, then after all is said and done (meaning all adjustments in the aggregate economy have occurred), discretionary fiscal and monetary policies are predicted to change ________________________. a) only the level of real aggregate output/income b) only the price level c) the price level under fiscal but not under monetary policy d) neither the price level nor the level real of aggregate output/income e) both the price level and the level of real aggregate output/income
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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If the long run macro aggregate supply curve is fixed and vertical, then after all is said and done (meaning all adjustments in the aggregate economy have occurred), discretionary fiscal and monetary policies are predicted to change ________________________.
a) only the level of real aggregate output /income
b) only the price level
c) the price level under fiscal but not under monetary policy
d) neither the price level nor the level real of aggregate output/income
e) both the price level and the level of real aggregate output/income
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