The Great Moderation Consensus About Macroeconomic Policy Is That Monetary

question 110

Multiple Choice

The Great Moderation consensus about macroeconomic policy is that monetary policy:

• A) is effective.
• B) can reduce the unemployment rate below the natural rate.
• C) makes the economy unstable.
• D) should follow a policy rule.

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Definitions:

Capital Account

An account on a nation's balance of payments that records transactions involving the purchase and sale of assets, such as property and stocks.

Withdrawals

Withdrawals refer to the act of taking money out of a bank account, but in a business context, it often refers to the owner taking funds out of the business for personal use.

Income Summary

An account used in the closing process in accounting to gather all revenues and expenses for a period before transferring the net result to the capital account.

Net Income

The total earnings of a company after all expenses and taxes have been deducted from revenue.