Suppose the economy is initially operating well below capacity. in this case, an expansionary macroeconomic policy will result in
a. equal increases in prices and output.
b. a small price increase relative to the output increase.
c. a small output increase relative to the price increase.
d. runaway inflation.
Answers: 2
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Suppose the economy is initially operating well below capacity. in this case, an expansionary macroe...
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