By shifting aggregate demand, monetary policy can affect and . a. Real gross domestic product (GDP); unemployment
b. Interest rates; unemployment
c. Real GDP; interest rates
d. Money supply; real GDP
e. Money supply; unemployment

a. Real gross domestic product (GDP); unemployment

Explanation:

Monetary policy refers to the Central Bank of a country changing the supply of money as well as the interest rate in the country to either stimulate, slow down or keep the economy stable.

When expansionary monetary policy is implemented for instance, it will lead to more money in the economy as well as a reduced interest rate. This will spur companies to borrow to invest and consumers to borrow to consume. This will shift Aggregate Demand to the right and lead to a higher real GDP.

As earlier said, companies to borrow to invest and start up new projects or expand. This will need more labor so more people will be hired thereby pushing the unemployment rate downward.

Contractionary monetary policy would have the opposite effect.

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explanation:

answer; functional fixedness;