Expansionary macro policy will cause real output

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Assuming that the LAS Curve remains stationary and does not shift, if an economy is at its potential output, an expansionary macro policy will cause real output to:

1. Fall in the short run and in the long run.

2. Rise in the short run but not the long run.

3. Rise in the long run but not in the short run.

4. Rise in both the short run and the long run.

Reference no: EM13685251

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