A Core Belief of Modern Macroeconomics Is That in the Short

question 44

Multiple Choice

A core belief of modern macroeconomics is that in the short run:

• A) fluctuations in aggregate demand have no impact on the price level.
• B) fiscal policy is more effective in changing output than monetary policy.
• C) the economy always operates at or near the natural rate of unemployment.
• D) monetary policy is more effective in changing output than fiscal policy.
• E) fluctuations in aggregate demand affect unemployment.

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Definitions:

Discrimination

Unfair treatment of individuals based on characteristics such as race, gender, age, or sexual orientation.

Average Wages

The mean wage calculated by dividing the total wage bill by the number of wage earners; it represents the midpoint of wage distribution in a given area or sector.

Average Wages

The mean earnings of workers in a specific region, industry, or occupation, reflecting the general level of compensation.

Male Workers

Individuals who are male and participate in the workforce, contributing to the labor supply in various industries and sectors.