In the 1970s the U

question 29

Multiple Choice

In the 1970s the U.S. economy experienced a novel set of macroeconomic outcomes: rising
Price level and falling output. This experience led policymakers to

• A) aggregate demand was more important than aggregate supply in determining the economy's output level.
• B) acknowledge that monetary policy and aggregate supply play a role in influencing macroeconomic performance.
• C) conclude that fiscal policy alone was enough to stabilize the economy.
• D) conclude that being a vital input, oil prices should be controlled by the government.

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Definitions:

Scientific Test

A methodical procedure carried out with the aim of verifying, falsifying, or establishing the validity of a hypothesis.

Telepathy

The supposed communication of thoughts or ideas through means other than the known senses, considered pseudoscience by mainstream science.

Extrasensory

Pertaining to perception or communication outside of the normal sensory processes, often referred to as ESP or sixth sense.

Perception

The process by which individuals interpret and organize sensory information to produce a meaningful experience of the world.