Which of the Following Statements Correctly Describes the Policy Stance

question 57

Multiple Choice

Which of the following statements correctly describes the policy stance of a macroeconomist?

• A) A monetarist believes that the quantity of money should be constantly changed in order to offset changes in aggregate demand.
• B) A Keynesian would believes that if taxes are always kept low and the quantity of money is kept on a steady growth path, no policy actions will be needed to maintain full employment.
• C) A new classical macroeconomist believes that fiscal and monetary policy are required to maintain full employment.
• D) A classical macroeconomist believes that maintaining consistently low taxes will allow the economy to expand at an appropriate and rapid pace.

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Definitions:

Supply of Candidates

The availability of individuals qualified or willing to take up specific job roles or positions.

Power Distance

As a cultural value, the degree to which members of a society expect, and should expect, power to be distributed unequally.

Cultural Minorities

Groups within a society that retain distinct ethnic, religious, or cultural characteristics that differ from the majority population.

Team Performance

The efficiency and success of a group of individuals working together towards a common goal, measured by various metrics depending on the context.