Which of the Following Statements Correctly Describes the Policy Stance

question 15

Multiple Choice

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

• A)A new classical macroeconomist believes that fiscal and monetary policy are required to maintain full employment.
• B)A monetarist believes that the quantity of money should be constantly changed in order to offset changes in aggregate demand.
• C)A Keynesian 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.
• 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:

Crutches

Supportive devices used to aid walking when an individual is unable to use one or both legs fully.

Physical Condition

The state of one's body, in terms of fitness, health, and overall wellbeing.

Swing-To Gait

A mode of walking or gait where both crutches or walking aids are advanced and then the legs swing to meet them, commonly used by individuals with lower limb disabilities.

Crutches

Assistive devices used to transfer weight from the legs to the upper body during movement, often used after injury or surgery.