Which of the Following Does NOT Represent the Broad Consensus

question 180

Multiple Choice

Which of the following does NOT represent the broad consensus among macroeconomists?

• A)Monetary policy should play the main role in stabilization policy.
• B)The central bank should be independent, insulated from political pressures, to avoid a political business cycle.
• C)Discretionary fiscal policy should be used sparingly because of policy lags and the risks of the political business cycle.
• D)Discretionary fiscal policy can lower the natural rate of unemployment.

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Definitions:

Difficult Task

A task that requires significant effort, skill, or knowledge to complete, and often poses a challenge to the individual attempting it.

Thalamus

A part of the brain located in the center of the cerebral hemisphere that acts as a major relay station for sensory and motor signals to the cerebral cortex.

Amygdala

A limbic system structure in the brain involved in emotion processing, fear response, and memory.

Autonomic Arousal

Refers to physiological responses not under voluntary control, such as increased heart rate or sweating, often in reaction to stress or stimuli.