There is a need to implement Monetary and Fiscal policy. Arrange the following in sequence in the context of Monetary and Fiscal policy.
A. Demand is more than the level of output produced at full employment
B. It leads to rise in prices in the long run
C. Equilibrium level of output is more than full employment
D. Monetary policy and fiscal policy implemented to control price rising
E. This Situation is called Excess demand
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 3
The correct sequence will be as follows:
C. Equilibrium level of output is more than full employment.
A. Demand is more than the level of output produced at full employment.
E. This Situation is called Excess demand.
B. It leads to rise in prices in the long run.
D. Monetary policy and fiscal policy implemented to control price rising.