Using the DD – AA framework,

Using the DD – AA framework, which one of the following statements is the most accurate?

A.Only monetary policy can bring the economy to full

B.Only fiscal policy can bring the economy to full

C.Only both monetary and fiscal policies can bring the economy to full employment.

D.Neither policy is capable of bringing the economy to full

E.Monetary policy by itself or fiscal policy by itself can bring the economy to full employment.

Answer: E

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