Economics 9708 · AS & A Level · Monetary policy

Monetary policy — practice question

A government applies expansionary monetary policy during a three-year period. Which combination best identifies the likely effect of this policy?

Aunemployment falling; price level rising; real GDP falling
Bunemployment rising; price level rising; real GDP rising
Cunemployment falling; price level rising; real GDP rising
Dunemployment rising; price level falling; real GDP rising

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