The Great Moderation Consensus Is That Expansionary Monetary Policy Affects

question 260

True/False

The Great Moderation consensus is that expansionary monetary policy affects only prices, not output.

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Definitions:

Priming

A psychological principle whereby exposure to one stimulus influences the response to a subsequent stimulus, without conscious guidance or intention.

Short-Term Memory

A capacity for holding a small amount of information in mind in an active, readily available state for a short period of time.

Implicit Memory

A type of memory that enables us to perform tasks without conscious awareness of previous experiences, such as riding a bike.

Iconic Memory

A type of visual memory that holds an exact copy of what is seen for a very short period of time.