Those opposed to active stabilization policy believe which of the following? O A monetary policy designed to offset changes in the unemployment rate is effective. O Fiscal policy is unable to change aggregate demand or aggregate supply. O Fluctuations would not exist in the absence of fiscal policies. O The political process creates lags in the implementation of fiscal policy.If the MPC is 0.8 and government increases spending by $50 million, what will be the demand for goods and services generated by this increase? O $10 million $40 million $250 million $62.5 million Question 33 (1.25 points) In the diagrams below, if the economy starts at c and 1, then in the short run, where does an increase in the Money Supply move the economy? Price Inflation Level Rate 2 3 Output Unemployment a and 1 c and 3 a and 3 b and 2