Believers in Fixed Rules Maintain That

question 61

Multiple Choice

Believers in fixed rules maintain that

• A)with accurate forecasts, we can see inflation coming at least one year ahead of time.
• B)the length of stabilization lags is not important because fiscal policy actions are taken quickly and the economy feels the effect on aggregate demand quickly.
• C)we should forget about discretionary policy and put the economy on autopilot, relying instead on automatic stabilizers and the economy's self-correcting mechanism.
• D)the economy's self-correcting mechanism is slow and not very reliable, even with automatic stabilizers.

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Definitions:

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Tubular structures in the circulatory system through which blood is transported throughout the body, including arteries, veins, and capillaries.

Collagen Production

The biological process involving the synthesis of collagen, a crucial protein for skin, bone, and connective tissue health and repair.

Dermis

The thick layer of living tissue below the epidermis, containing nerve endings, sweat glands, and blood vessels.

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Refers to impairments of the nervous system function, which can affect cognitive, physical, and emotional abilities.