The Great Moderation Consensus About Macroeconomic Policy Is That

question 247

Multiple Choice

The Great Moderation consensus about macroeconomic policy is that:

• A) only monetary policy works against recessions, but fiscal policy is effective only in the long run.
• B) expansionary monetary and fiscal policies can both reduce unemployment in the long run.
• C) expansionary monetary and fiscal policies are both effective in the short run but not in the long run.
• D) discretionary monetary and fiscal policies are effective in the short run and in the long run.

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