"Policy Ineffectiveness" Refers to the Hypothesis That Monetary and Fiscal

question 36

Multiple Choice

"Policy ineffectiveness" refers to the hypothesis that monetary and fiscal policy actions that change aggregate demand will

• A)neither affect output nor employment even in the short run.
• B)affect output and employment in both the short run and long run.
• C)affect output but not employment in the short run.
• D)not affect output but will affect employment in the long run.

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Definitions:

Procedural Rules

Regulations or guidelines that govern the procedures to be followed in court proceedings or other formal processes.

Federal Court

A judicial tribunal established by the United States government, with authority derived from the Constitution and federal laws, to adjudicate disputes that involve national statutes, constitutional issues, and other matters within federal jurisdiction.

State Court

A court that has jurisdiction over disputes pertaining to state laws and constitutions.

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A principle in United States federal law allowing federal courts to hear cases where the parties are from different states or countries and the amount in controversy exceeds a specified threshold.