Which of the following statements is true?

Select one:

a.In the first instance, fiscal policy affects the economy through its impact on aggregate demand, while monetary policy affects the economy through its impact on short run aggregate supply.

b.In the first instance, both fiscal policy and monetary policy affect the economy through their impact on aggregate demand.

c.In the first instance, fiscal policy affects the economy through its impact on short run aggregate supply, while monetary policy affects the economy through its impact on aggregate demand.

d.In the first instance, both fiscal policy and monetary policy affect the economy through their impact on short run aggregate supply.

C1= 110; I1=150; G1=120; Ex1=90; Im1=100

C2= 110; I2=150; G2=130; Ex2=90; Im2=100

It is more likely in this scenario that aggregate demand has changed as a result of

Select one:

a.expansionary fiscal policy

b.contractionary fiscal policy

c.expansionary monetary policy

d.contractionary monetary policy

C1= 110; I1=150; G1=120; Ex1=90; Im1=100

C2= 110; I2=140; G2=120; Ex2=90; Im2=100

It is more likely in this scenario that aggregate demand has changed as a result of

Select one:

a.contractionary fiscal policy

b.contractionary monetary policy

c.expansionary monetary policy

d.expansionary fiscal policy