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:

High-volume Car Stereo

A car audio system capable of producing very loud sounds, often customized or enhanced beyond factory settings.

Loudly

With a high volume or intensity of sound that easily attracts attention or may cause disruption.

Placebo

A substance or treatment with no therapeutic effect, used as a control in testing new drugs or treatments.

Subliminal Recordings

Audio or visual content that is designed to pass below the normal limits of perception.