One Strategy Consistent with the New Classical Macroeconomists' Theories Would

question 9

Multiple Choice

One strategy consistent with the new classical macroeconomists' theories would have

• A) fiscal policy focus on maintaining full employment regardless of the size of the resulting budget deficit.
• B) monetary policy stick to an announced policy to keep the rate of inflation to some specified low figure.
• C) the government emphasize policies of wage and price controls to achieve a targeted full-employment rate with stable prices.
• D) monetary authorities impose a structure of variable tax rates that automatically adjusts to changes in the unemployment rate.
• E) both fiscal and monetary policy coordinated in a way that ensures that both the Phillips curve and long-run aggregate supply curves are vertical.

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Definitions:

Buying Center

A group of individuals within an organization who are involved in the process of evaluating and making purchasing decisions.

Evaluating Options

The process of analyzing and comparing different choices in order to make a decision or solve a problem.

Individual Differences

Variations among individuals in their behavior, cognition, personality, and other attributes, which distinguish one person from another.

Consumer Behavior

The study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society.