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If policymakers consistently use expansionary fiscal and monetary policies to push an economy's output beyond full employment, what will occur in the long run? Inflationary
If policymakers consistently use expansionary fiscal and monetary policies to push an economy's output beyond full employment, what will occur in the long run?
Inflationary expectations will increase, and the aggregate price level will increase.
Inflationary expectations will decrease, and the aggregate price level will increase.
Inflationary expectations will decrease, and the aggregate price level will decrease.
Inflationary expectations will increase, and the aggregate price level will decrease.
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