If a Contraction in Aggregate Demand Causes a Recession, the Great

question 11

Multiple Choice

If a contraction in aggregate demand causes a recession, the Great Moderation consensus on macroeconomics suggests that:

• A) fiscal discipline with a balanced budget eventually stimulates aggregate demand.
• B) fiscal policy should take the leading role in economic stabilization.
• C) the use of discretionary fiscal policy is counterproductive except in special circumstances.
• D) monetary discipline with a reduction in the money supply eventually stimulates aggregate demand.

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Definitions:

Informational Control

The ability to manage and utilize information effectively to guide behavior and decisions, often impacting perceptions of control over the environment.

Assertiveness

The quality of being self-assured and confident without being aggressive, enabling clear and effective communication of one's needs or desires.

Silent Authority

A form of influence based on the perception that someone has the right to prescribe behavior due to their positional power without the need for verbal instructions.

Upward Appeals

A strategy where an individual attempts to influence a decision or gain support by appealing to higher-level superiors or citing influential or authoritative higher sources.