Which of the Following Is True of the New Keynesian

question 89

Multiple Choice

Which of the following is true of the new Keynesian view of stabilization policy?

• A)It is necessary because shifts in aggregate demand are the main source of movements in current output.
• B)It is necessary during recessions but not during booms.
• C)It is unnecessary because output fluctuations reflect productivity disturbances.
• D)It is unnecessary because output fluctuations are largely the result of policy mistakes by the Fed.

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Definitions:

Filtering

A method listeners use to hear only what they want to hear, which may result in failing to receive messages correctly.

Noise

Disturbances or unwanted sounds that interfere with communication, concentration, or the enjoyment of an environment.

Emotional Timing

The appropriate or effective management and expression of emotions in various situations, considering context and interpersonal dynamics.

Emotional Quotient

A measure of a person's ability to recognize and manage their emotions and the emotions of others.