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.

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Definitions:

Positive Force

A constructive influence or impact that leads to beneficial changes or outcomes.

Negative Force

An influence or factor that detracts from, hampers, or opposes positive outcomes or progress.

Labor Relations

The study and practice of managing relationships between employers and employees, focusing on negotiation, implementation of agreements, and resolution of disputes.

Industrialization

The process by which an economy is transformed from primarily agricultural to one based on the manufacturing of goods.