Expansionary monetary policy in the short and long run

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With adaptive expectations, what is the inevitable consequence of an active, expansionary monetary policy in the short and long run?

A. higher unemployment in the short run, lower inflation in the long run

B.higher unemployment in the short run, higher inflation in the long run

C. lower unemployment in the short run, lower inflation in the long run

D. lower unemployment in the short run, higher inflation in the long run

Reference no: EM131112217

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