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The Great Moderation Consensus Is That Discretionary Fiscal Policy Can

question 182

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The Great Moderation consensus is that discretionary fiscal policy can be destabilizing because of lags in adjusting policy.


Definitions:

Free-Floating Anxiety

A general feeling of uneasiness or anxiety that is not related to any specific object or situation.

Systematic Desensitization

A therapeutic technique aimed at reducing anxiety or phobias through gradual exposure to the feared object or situation combined with relaxation exercises.

Phobias

Intense, irrational fears of specific objects or situations, significantly impacting an individual's daily life.

Unconscious Thoughts

Mental processes that occur without conscious awareness, influencing feelings, thoughts, and behaviors in ways not immediately accessible to introspection.

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