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:

Birds

A class of warm-blooded egg-laying vertebrates characterized by feathers, beaks, and typically the ability to fly.

Seeds

The reproductive unit of flowering plants, capable of developing into another such plant.

Thick Beaks

A characteristic of some birds that have evolved robust, heavy beaks to crush or crack hard food sources.

Chyme

Mix of food and gastric fluid.