One Explanation as to Why Monetary Policy Did Not Have

question 49

Multiple Choice

One explanation as to why monetary policy did not have the intended effects on the economy during the Great Recession is that

• A) part of the recession was caused by a rightward shift in aggregate supply.
• B) monetary policy is ineffective in the short run.
• C) the monetary policy conducted during the Great Recession was mostly unexpected.
• D) part of the recession was caused by a leftward shift in aggregate supply.
• E) focus was on fiscal policy during the Great Recession.

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Definitions:

Job Order Cost System

An accounting system that assigns costs to specific production batches or jobs, useful for companies producing unique or custom products.

Process Cost System

A method of accounting used in manufacturing where costs are assigned to products based on the processes they undergo.

Fringe Benefits

Additional compensations given to employees beyond their regular salary or wages, such as health insurance, retirement plans, or company cars.

Factory Labor

The workforce involved in the manufacturing process, whose wages are considered direct costs to the production of goods.