Fiscal policy impacts the supply side of the economy

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Reference no: EM13836501

In the long-run, fiscal policy impacts the supply side of the economy. Why do we ignore these effects in the short-run?

a. because the demand side effect is more prominent in the long run

b. because the supply side effects happen more slowly than demand side effects

c. because the short run is not important in macroeconomics

d. because the supply-side effects don't actually effect potential GDP

Reference no: EM13836501

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