One Explanation as to Why Monetary Policy Did Not Have

question 49

Multiple Choice

One explanation as to why monetary policy did not have the intended effects on the economy during the Great Recession is that

• A) part of the recession was caused by a rightward shift in aggregate supply.
• B) monetary policy is ineffective in the short run.
• C) the monetary policy conducted during the Great Recession was mostly unexpected.
• D) part of the recession was caused by a leftward shift in aggregate supply.
• E) focus was on fiscal policy during the Great Recession.

---

Definitions:

Know-How

Practical knowledge or expertise in a particular area or task, enabling effective action and problem-solving.

Systematically Capitalizing

The structured and strategic approach to utilizing assets, resources, or opportunities to gain a beneficial or profitable outcome.

Explicit Knowledge

Information or knowledge that is easily articulated, written, or shared, often in a formal language or system.

Implicit Knowledge

Knowledge that is acquired and applied without conscious awareness, often in the form of skills or learned behaviors.