Expansionary policy?

Question

Expansionary policy:

A. increases unemployment and inflation in the short run, but only increases inflation in the long run

B. increases unemployment and reduces inflation in the short run, but increases unemployment in the long run

C. reduces unemployment in the short run, but increases inflation in the short run and long run

D. reduces unemployment and inflation in the short run, but increases unemployment in the long run

I am pretty sure that the answer is C or D...because it reduces unemployment....but I am not too sure about the rest. Can anyone help me with this one?

Answer 1

C for sure.

Adding money to the system does create employment but definitely builds inflation into the economy