1 answer

Consider the impact of monetary policy over time. In the short run, adjust. In the long...

Question:




Consider the impact of monetary policy over time. In the short run, adjust. In the long run, prices adjust ---- prices some;
Consider the impact of monetary policy over time. In the short run, adjust. In the long run, prices adjust ---- prices some; some some; all all; all all: some

Answers

Solution -

Consider the impact of monetary policy over time. In the short run, Some prices adjust. In the long run, all prices adjust.

Option  some; all is Correct Option.

Reason -

Monetary policy can either accelerate or slow the economy; At the very least, the cost of commodities is sticky and may fail to adjust as there is no real impact. An expanded monetary policy is meant to stimulate the economy in the short term by increasing money supply, increasing real GDP and lowering unemployment levels.On the other hand, a narrow monetary policy that reduces the shortage of money reduces the economy in the short term and helps reduce inflation.

Adjust long-term prices across the economy; This is because GDP determines the measured output; Any changes in the money supply can cause prices to change. It helps achieve both inflation and growth objectives.

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