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:

Mean Score

The average value calculated by adding all individual scores and dividing by the number of scores.

Confidence Interval

A collection of values, extracted from sample measurements, likely to harbour the value of an undetected population parameter.

Confidence Interval

A range of values, derived from sample statistics, that is believed to contain the true population parameter with a specified level of confidence.

Confidence Interval

A breadth of values, taken from statistical examination of a sample, that aims to envelop the value of an unrevealed population trait.