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Question
Assume that the government decides to use fiscal or monetary policy to stimulate the economy and that this action comes as a surprise to most individuals and businesses. In the short run, the result will be
A) a decrease in the average duration of unemployment and a decrease in the unemployment rate.
B) an increase in the average duration of unemployment and an increase in the unemployment rate.
C) a decrease in aggregated demand and a rise in the price level.
D) an increase in aggregate demand and a fall in the price level.
Answer
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Related questions
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