According to the Monetarists,"Policy Activism" Is Difficult If Not Impossible

question 60

Multiple Choice

According to the Monetarists,"Policy activism" is difficult if not impossible to perform successfully because

• A)the timing of policy impacts on nominal GDP are known.
• B)the magnitude,size of impacts are known.
• C)the timing and magnitude of the impact of AD disturbances are known,forecasted with precision.
• D)Monetarists believe all of the above are correct.

---

Definitions:

Causal Mechanism

The process or series of events that explains how and why one factor leads to or influences an outcome.

Descriptive Label

is a description or label that provides information about the characteristics or contents of something without implying a judgement.

Signs and Symptoms

Indicators that something is not normal within the body, with signs being observable to others and symptoms being experienced by the individual.

Irrational Fear

Describes an excessive or unreasonable sense of fear or dread regarding something that poses little to no actual danger.