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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Definitions:

Compulsive

Relating to behavior that is driven by an irresistible urge, often against one's conscious wishes.

Amnesic

Pertaining to amnesia, a condition characterized by loss of memory, often due to brain injury, disease, or psychological trauma.

Phobic

Exhibiting or pertaining to an extreme or irrational fear or aversion to a specific object, situation, or activity.

Obsessive-Compulsive Disorder

A mental disorder characterized by persistent, unwanted thoughts (obsessions) and repetitive behaviors (compulsions) as a way to manage anxiety.