Which of the Following Statements CORRECTLY Describes the Policy Stance

question 418

Multiple Choice

Which of the following statements CORRECTLY describes the policy stance of a macroeconomist?

• A) A monetarist believes that the quantity of money should be constantly changed in order to offset changes in aggregate demand.
• B) A new classical macroeconomist believes that fiscal and monetary policy are required to maintain full employment.
• C) A Keynesian believes that if taxes are always kept low and the quantity of money is kept on a steady growth path, no policy actions will be needed to maintain full employment.
• D) A classical macroeconomist believes that maintaining consistently low taxes will allow the economy to expand at an appropriate and rapid pace.

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Definitions:

Pairwise Comparison

A technique used in decision-making and research for evaluating and comparing all pairs in a set of items to determine preferences, rankings, or the significance of differences.

Total Movement

Refers to the complete or aggregate amount of movement, often used in logistics and material handling to describe the flow of goods within a system.

Cycle Time

The total time from the beginning to the end of a process, including processing and waiting times, indicating the speed of production.