Respuesta :
if the economy is at equilibrium, then an expansionary monetary policy will reduce unemployment, but have little effect on inflation. Therefore option A is correct.
What is Inflation?
Price increases, or inflation, can be thought of as the gradual loss of purchasing power. The average price increase of a selection of goods and services over time can serve as a proxy for the rate at which purchasing power declines.
Human requirements go beyond simply one or two things, even if it is simple to track price changes over time for certain products. For a comfortable life, people require a wide variety of items as well as a variety of services. Commodities like food grains, metal, and fuel are among them, as are utilities like power and transportation, as well as services like labor, entertainment, and health care.
Therefore option A is correct.
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https://brainly.com/question/252791
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