A Core Belief of Modern Macroeconomics Is That in the Short

question 47

Multiple Choice

A core belief of modern macroeconomics is that in the short run,

• A)fiscal policy is more effective in changing output than monetary policy.
• B)monetary policy is more effective in changing output than fiscal policy.
• C)fluctuations in aggregate demand affect unemployment.
• D)fluctuations in aggregate demand have no impact on the price level.
• E) the economy always operates at or near the natural rate of unemployment.

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Definitions:

Reconstruction Era

The Reconstruction Era refers to the period in United States history immediately following the Civil War, from 1865 to 1877, focused on rebuilding the Southern states and integrating formerly enslaved individuals into society.

American National Identity

The collective identity of the United States, shaped by its history, values, beliefs, and cultural practices, that distinguishes it from other nations.

Constitution of 1787

The foundational document of the United States' federal government, outlining the nation's system of government and the rights of its citizens, ratified in 1788.

Civic Nationalism

A form of nationalism that is defined by shared citizenship, legal rights, and allegiance to a country, rather than by ethnicity or culture.