Which of the Following Views Are Consistent with the Case

question 67

Multiple Choice

Which of the following views are consistent with the case for nondiscretionary macroeconomic policy?

• A)Even with time lags,discretionary policy moves the economy to full employment before the economy's self-correcting mechanism would.
• B)The wage and price adjustment process being extremely slow,a nondiscretionary policy results in a large loss of output.
• C)Workers will come to expect expansionary policies whenever the economy moves below full employment.
• D)A discretionary,accommodating policy of shifting the aggregate demand curve will produce less volatility in both the price level and output due to the short time it takes to shift aggregate demand.