The Great Moderation Consensus in Macroeconomics Is That

question 185

Multiple Choice

The Great Moderation consensus in macroeconomics is that:

• A)prices are sticky in the long run but flexible in the short run.
• B)decreases in aggregate output can be traced to poor monetary policy.
• C)in the long run, neither monetary nor fiscal policy can reduce unemployment below the natural rate.
• D)monetary and fiscal policies are equally effective at curing recessions.

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Definitions:

Softball Equipment

The gear and accessories required for playing softball, such as bats, gloves, balls, and protective gear.

Net Accounts Receivable

The amount of money owed to a company by its customers for goods or services provided, after accounting for any allowances for doubtful accounts.

Allowance Method

An accounting technique used to estimate bad debts and adjust accounts receivable to reflect only receivables expected to be collected.

Uncollectible Account

A receivable that a company has deemed unlikely ever to be collected and is therefore written off as a bad debt expense.