Question: Help me out with this question please : 1 1.Our model takes the price level as given in the short run, but in reality the

Help me out with this question please :

Help me out with this question please : 1 1.Our model takes

1 1.Our model takes the price level as given in the short run, but in reality the currency appreciation caused by a permanent fiscal expansion might cause to fall a bit bylowering some import prices. If can fall slightly as a result of a permanent fiscal expansion, is it still true that there are no output effects? (As above, assume an initial long-run equilibrium.)

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