If a Contraction in Aggregate Demand Causes a Recession, the Great

question 11

Multiple Choice

If a contraction in aggregate demand causes a recession, the Great Moderation consensus on macroeconomics suggests that:

• A) fiscal discipline with a balanced budget eventually stimulates aggregate demand.
• B) fiscal policy should take the leading role in economic stabilization.
• C) the use of discretionary fiscal policy is counterproductive except in special circumstances.
• D) monetary discipline with a reduction in the money supply eventually stimulates aggregate demand.

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A theory in ethics and philosophy asserting that moral standards are derived from human nature and the natural world, holding universal applicability.

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