What happens to the following closed economy in terms of Y, r and P if an...

Transcribed Image Text:

What happens to the following closed economy in terms of Y, r and P if an expansionary fiscal policy and monetary policy have been used simultaneously in the short run and the long run? P LRAS AD SRAS Y What happens to the following closed economy in terms of Y, r and P if an expansionary fiscal policy and monetary policy have been used simultaneously in the short run and the long run? P LRAS AD SRAS Y

Answer rating: 100% (QA)

In the short run the simultaneous use of expansionary fiscal and monetary policies in a closed economy can have the following effects 1 Output Y The e... View the full answer