The Great Moderation Consensus Regarding the Use of Monetary or Fiscal

question 88

Multiple Choice

The Great Moderation consensus regarding the use of monetary or fiscal policy to reduce unemployment in the long run is that:

• A) unemployment can be constantly decreased as long as expectations of inflation are kept low.
• B) the natural rate of unemployment limits what monetary and fiscal policy can accomplish.
• C) the concept of the nonaccelerating inflation rate of unemployment, or NAIRU, was a mistake.
• D) the only effective policy is to maintain a constant growth rate of the money supply.

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Definitions:

Exocrine

Pertains to glands that release their secretions through ducts onto an epithelial surface, such as sweat glands.

Goblet Cells

Specialized epithelial cells that secrete mucus to lubricate and protect the mucous membranes of the intestines and respiratory tract.

Serous Fluid

Fluid similar to lymph that is produced by and covers serous membrane; it lubricates the serous membrane.

Mucus

A slippery secretion produced by mucous membranes, serving to protect and lubricate surfaces.