Advocates of Nondiscretionary Policy Contend That a Policy of Shifting

question 15

Multiple Choice

Advocates of nondiscretionary policy contend that a policy of shifting the aggregate demand curve will be costly because it produces more volatility in both the price level and output.Thus they favor

• A)a policy of variable money supply growth.
• B)supply-side policy.
• C)demand-management policy.
• D)a constant-money-growth-rate rule.

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Definitions:

Boredom

A state of disinterest or weariness that occurs when an individual feels unengaged by their current activity or surroundings.

Self-Actualization

According to Maslow, one of the ultimate psychological needs that arises after basic physical and psychological needs are met and self-esteem is achieved; the motivation to fulfill one’s potential.

Economic Security

The state of having stable income or other resources to support a standard of living now and in the foreseeable future.

Lateral Hypothalamus

An area of the brain that plays a significant role in regulating hunger and thirst.