Which Statement Is Broadly Agreed Upon by Modern Macroeconomists

question 124

Multiple Choice

Which statement is broadly agreed upon by modern macroeconomists?

• A) Monetary and fiscal policy can both be effective at decreasing unemployment in the short run but not in the long run.
• B) Discretionary fiscal policy is typically an effective remedy for a recessionary gap except in special circumstances.
• C) The central bank should set a specific target rate of inflation.
• D) A monetary rule should be set by the central bank.

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Definitions:

In Vitro

A process, experiment, or procedure performed in a controlled environment outside of a living organism.

Active Immunity

Immunity that results from the production of antibodies by the immune system in response to the presence of an antigen.

Chicken Cholera

A contagious bacterial disease affecting chickens, characterized by severe respiratory distress, diarrhea, and high mortality.

Louis Pasteur

A French biologist renowned for his discoveries in the principles of vaccination, microbial fermentation, and pasteurization.