The Great Moderation Consensus Among Macroeconomists Is That Fiscal Policy

question 56

Multiple Choice

The Great Moderation consensus among macroeconomists is that fiscal policy should be used sparingly because:

• A) monetary policy is always more effective.
• B) it always requires higher taxes.
• C) lags in adjusting to fiscal policy can make it counterproductive.
• D) of the risk of government waste.

---

Definitions:

Nursing-home Residents

Individuals living in facilities that provide a range of personal and medical care to meet the needs of people who cannot care for themselves independently.

Sense of Control

The belief or perception that one has the power to influence and direct the outcomes of events in their life, often linked to psychological well-being.

Disease

A disorder or malfunction of the mind or body that results in discomfort, dysfunction, distress, or death to the person afflicted.

Stress

A physical, mental, or emotional factor that causes bodily or mental tension and may be a factor in disease causation.