Question

Monetary policy is limited in its impact when choose one or more:a.a recession is the result of decreased aggregate demand rather than decreased aggregate supply.b.monetary policy is unexpected.c.people adjust their expectations of inflation.d.changes in aggregate supply lead to lower real gdp.

Answer 1

Monetary policy is limited when it receives an impact when there are changes in the aggregate supply that leads to a lower real GDP. It also occurs when monetary policies are unexpected and suffers a variation of measures that alter the economy of the country.