One Explanation as to Why Monetary Policy Did Not Have

question 49

Multiple Choice

One explanation as to why monetary policy did not have the intended effects on the economy during the Great Recession is that

• A) part of the recession was caused by a rightward shift in aggregate supply.
• B) monetary policy is ineffective in the short run.
• C) the monetary policy conducted during the Great Recession was mostly unexpected.
• D) part of the recession was caused by a leftward shift in aggregate supply.
• E) focus was on fiscal policy during the Great Recession.

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Definitions:

Implementation

The process of putting a decision or plan into effect; executing or applying a method, technique, or policy.

Knowing-Doing Gap

The divergence between what individuals or organizations know they should do and what they actually do.

Managers

Individuals responsible for controlling or administering all or part of a company or similar organization, overseeing and directing the work of others.

Job Enrichment

The process of making a job more rewarding, challenging, and interesting by adding more meaningful tasks to enhance employee satisfaction and performance.