The Great Moderation Consensus About Macroeconomic Policy Is That

question 247

Multiple Choice

The Great Moderation consensus about macroeconomic policy is that:

• A) only monetary policy works against recessions, but fiscal policy is effective only in the long run.
• B) expansionary monetary and fiscal policies can both reduce unemployment in the long run.
• C) expansionary monetary and fiscal policies are both effective in the short run but not in the long run.
• D) discretionary monetary and fiscal policies are effective in the short run and in the long run.

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Definitions:

Attitudes

A settled way of thinking or feeling about something, typically reflected in a person's behavior.

Sympathetic Arousal

A component of the autonomic nervous system's response preparing the body for fight-or-flight reactions to perceived threats, characterized by increased heart rate, blood pressure, and energy mobilization.

Self-handicapping Strategy

Behavioral or psychological tactics employed by individuals to prevent self-blame by generating excuses or hindrances to performance in anticipation of potential failure.

Internal Causes

Factors originating within the organism or system that affect behavior, thoughts, or actions.