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.

---

Definitions:

Agent

An entity or individual authorized to act on behalf of another, often in business transactions.

Good Business Writing

The skill of communicating ideas effectively, clearly, and professionally in written business contexts.

Formal Style

A mode of communication characterized by a structured, professional tone and use of proper grammar and vocabulary, often used in business, academic, or official contexts.

Third-person Pronouns

Pronouns used to refer to people or things other than the speaker or listener, such as "he," "she," "it," "they."