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Principles of Macroeconomics Study Set 8
Exam 21: The Influences of Monetary and Fiscal Policy on Aggregate Demand: Part B
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Question 41
True/False
Both monetary policy and fiscal policy affect aggregate demand.
Question 42
True/False
Government expenditures on capital goods such as roads could increase aggregate supply.Such effects on aggregate supply are likely to matter more in the short run than in the long run.