The Great Moderation Consensus in Macroeconomics Is That

question 185

Multiple Choice

The Great Moderation consensus in macroeconomics is that:

• A)prices are sticky in the long run but flexible in the short run.
• B)decreases in aggregate output can be traced to poor monetary policy.
• C)in the long run, neither monetary nor fiscal policy can reduce unemployment below the natural rate.
• D)monetary and fiscal policies are equally effective at curing recessions.

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Definitions:

Safety Inventory

Extra stock kept on hand to protect against stockouts caused by variability in demand or supply.

Safety Inventory

A stock buffer maintained to mitigate risk of stockouts due to demand variability and supply chain uncertainties.

Lead Time

The duration between the initiation and completion of a process, such as the time from placing an order to its delivery.

Standard Deviation

A measure of the dispersion or variability within a set of data points, indicating how much variation exists from the average.