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Which of the following statements best fits a neoclassical economic policy? a) The primary objective of monetary policy should be to stabilize aggregate output. b)

Which of the following statements best fits a neoclassical economic policy?

a) The primary objective of monetary policy should be to stabilize aggregate output. b) Government economic policy should pursue long-term economic goals, such as balanced and high growth and price level stability. c) Government economic policy should also stabilize aggregate output at the level of potential output in the short term.

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