Which Statement Does NOT Represent the Broad Consensus Among Macroeconomists

question 256

Multiple Choice

Which statement does NOT represent the broad consensus among macroeconomists?

• A) Monetary policy should play the main role in stabilization policy.
• B) The central bank should be independent, insulated from political pressures, to avoid a political business cycle.
• C) Discretionary fiscal policy should be used sparingly because of policy lags and the risks of the political business cycle.
• D) Discretionary fiscal policy can lower the natural rate of unemployment.

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Definitions:

Social Cognition Module

A presumed specialized brain mechanism or cognitive system that facilitates understanding, predicting, and processing social information.

Theory of Mind

The ability to attribute mental states—beliefs, intents, desires, emotions—to oneself and others and to understand that others have beliefs, desires, and intentions that are different from one's own.

Autobiographical Memory

refers to an individual's memory of events and experiences from their own life, forming a personal history.

Memory Capacity

The amount of information that an individual can store in their memory system over short-term or long-term periods.