Using the DD-AA Framework, Which One of the Following Statements

question 46

Multiple Choice

Using the DD-AA framework, which one of the following statements is the MOST accurate?

• A) Only monetary policy can bring the economy to full employment.
• B) Only fiscal policy can bring the economy to full employment.
• C) Only both monetary and fiscal policies can bring the economy to full employment.
• D) Both policies are capable of bringing the economy to full employment and low inflation.
• E) Monetary policy by itself or fiscal policy by itself can bring the economy to full employment.

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Definitions:

Self-Fulfilling Prophecy

A belief or expectation that influences a person to act in ways that make that belief come true.

Low Expectations

Minimal anticipations or hopes for success, achievement, or performance, often leading to limited outcomes.

McDonalization

The process by which principles of fast food restaurants, like efficiency, predictability, and control, come to dominate various sectors of society.

Pepsi-Coke Wars

A colloquial term for the long-standing intense competitive and advertising battles between Coca-Cola and PepsiCo.