Macroeconomic Policies Should

question 14

Multiple Choice

Macroeconomic policies should:

• A) reduce the severity of the ups and downs of the business cycle.
• B) encourage the economy to grow very fast.
• C) enable the economy to achieve the highest possible unsustainable long-term economic growth.
• D) encourage the economy not to grow in the long run.

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Definitions:

Sensory Memory

A type of storage that holds sensory information for a few seconds or less after an item is perceived.

Working Memory

A cognitive system that holds information temporarily available for processing tasks such as reasoning, learning, and comprehension.

Long-Term Memory

The capacity of the mind to store and retrieve information over extended periods, ranging from hours to decades.

Short-Term Memory

A limited-capacity store that can maintain unrehearsed information for about 20 to 30 seconds.