Economic Analysis Suggests That Countercyclical Macro-Policy Will

question 56

Multiple Choice

Economic analysis suggests that countercyclical macro-policy will

• A) be difficult to time properly because of uncertainty about the future direction of the economy.
• B) be difficult to implement because we do not know whether monetary policy is transmitted through the interest rate, or whether it affects aggregate demand directly.
• C) reduce the natural rate of unemployment when macro-policy is persistently expansionary.
• D) help reduce economic instability if, and only if, we are willing to tolerate double-digit inflation.

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Protective Factors

Conditions or attributes in individuals, families, communities, or the larger society that help people deal more effectively with stressful events and mitigate or eliminate risk.

Adolescents

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Youth Participation

The engagement of young people in decision-making processes and activities, aimed at empowering them and giving them a voice in society.

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