To Close an Inflationary Gap, the Great Moderation Consensus on Macroeconomics

question 69

Multiple Choice

To close an inflationary gap, the Great Moderation consensus on macroeconomics suggests that:

• A) a close coordination of fiscal and monetary policy is crucial.
• B) the automatic fiscal stabilizers are powerful enough to bring the economy back to equilibrium.
• C) policy makers should wait until a negative productivity shock brings the economy back to equilibrium.
• D) monetary policy should take the leading role in economic stabilization.

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Definitions:

Social-Cultural Influences

Factors in society and culture that impact individual behavior, thinking, and emotions, including norms, values, customs, and beliefs.

Biopsychosocial Approach

A holistic perspective in healthcare and psychology that considers biological, psychological, and social factors along with their complex interactions in understanding health, illness, and healthcare delivery.

Biopsychosocial Approach

An integrated approach to understanding disease and health, considering biological, psychological, and social factors.

Premature Sexual Activity

Engagement in sexual behaviors at an age that is considered earlier than the normative age of onset for such activities, potentially leading to various health and psychological risks.