The School of Thought That Monetary Policy Should Be the Main

question 100

Multiple Choice

The school of thought that monetary policy should be the main tool of stabilization policy, that is skeptical about the use of fiscal policy, and that recognizes constraints on policy imposed by the natural rate of unemployment and the political business cycle is:

• A) classical macroeconomics.
• B) Keynesian macroeconomics.
• C) monetarism.
• D) the Great Moderation consensus.

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Definitions:

Posting Reference

A notation or code that links journal entries to the corresponding ledger accounts, facilitating tracking and reviewing of financial transactions.

Journal Page Number

The specific page number in a journal where transactions are recorded, aiding in tracking and referencing financial activities.

Account Number

A unique sequence of numbers assigned to a customer's account in the books of a financial institution.

Prepaid Insurance

Definition: An asset account that represents insurance payments made in advance for coverage extending beyond the current financial reporting period.