One Clear Triumph for New Classical Macroeconomics Is Its Contribution

question 72

Multiple Choice

One clear triumph for New Classical macroeconomics is its contribution to the analysis of hyperinflation.In bringing extremely rapid inflation to a halt by radical changes in policy,there is generally ________ loss of output,which ________ the Policy Ineffectiveness Proposition.

• A)only a modest,supports a mild form of
• B)only a modest,completely overturns
• C)a major,supports a mild form of
• D)a major,completely overturns

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Definitions:

Nonexcludable

Nonexcludable goods are those that cannot feasibly or reasonably be kept from individuals who do not pay for them, one of the characteristics of public goods.

Nonrival

A characteristic of a good whereby one person's consumption does not prevent or decrease the ability of others to enjoy it as well.

Private Good

A product or service that is consumed by a single individual or household and cannot be used or consumed by others simultaneously.

Pizza

A popular Italian dish consisting of a usually round, flat base of leavened wheat-based dough topped with tomatoes, cheese, and often various other ingredients, which is then baked at a high temperature.