Most Economists Agree That

question 140

Multiple Choice

Most economists agree that

• A) fiscal policy is a more effective stabilization tool than monetary policy.
• B) it is difficult to time discretionary changes in macro-policy in a manner that will promote stability.
• C) monetary policy should focus on reducing unemployment, while fiscal policy should focus on the control of inflation.
• D) discretionary macro-policy can easily be instituted in a manner that will promote economic stability.

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Definitions:

Depressed Mood

A psychological state characterized by feelings of sadness, emptiness, or hopelessness.

Obsessive-Compulsive Disorder

A mental health disorder characterized by persistent, unwanted thoughts (obsessions) and repetitive behaviors (compulsions) as an attempt to alleviate anxiety.

Counting

The action of determining the total number of items in a group by assigning them numerical order.

Irrational

Thinking or behavior that lacks reason or logic, often driven by emotions rather than factual reasoning.