When It Comes to Macro-Policy, Most Economists Now Agree That

question 133

Multiple Choice

When it comes to macro-policy, most economists now agree that

• A) policy should be constantly changing in response to business cycle conditions.
• B) policy changes should exert stimulus during inflationary booms and restraint during downturns.
• C) given our ability to forecast economic conditions, policy changes easily can be implemented in a timely manner.
• D) policy changes are difficult to time correctly, and therefore constant shifts in policy are likely to be a source of economic instability.

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Definitions:

Ophiolite

A portion of the Earth's oceanic crust along with the upper mantle beneath it that has been elevated and is now visible above the surface of the sea.

Oceanic Crust

The part of the Earth's crust that underlies the ocean basins, generally thinner and more dense than continental crust, formed at mid-ocean ridges and recycled into the mantle at subduction zones.

Sheeted Dikes

A geological formation consisting of numerous parallel dikes formed when magma intrudes into a crack then solidifies.

Subduction-derived Magma

Magma that is formed by the melting of subducted oceanic crust beneath a continental plate.