One Danger of Using Monetary Policy to End a Recession

question 43

Multiple Choice

One danger of using monetary policy to end a recession is that

• A) sticky wages will have the purchasing power eroded.
• B) prices will rise and workers will demand higher wages.
• C) it might not be possible for AD to shift enough.
• D) none of the above.

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Definitions:

Moral-Rights View

The perspective that decisions should be based on ethical principles or standards, respecting individuals' rights and welfare.

Ethical Behaviour

The practice of acting in ways consistent with moral principles and values such as honesty, fairness, and integrity.

Honesty

The quality of being truthful, transparent, and free from deceit in one's actions and communications.

Individualism View

Considers ethical behaviour as that which advances long-term self-interests.