The Long-Standing Debate Over Rules Versus Discretion in Macroeconomics Centers

question 70

Multiple Choice

The long-standing debate over rules versus discretion in macroeconomics centers on the following statement ________.

• A)"discretionary policy can lead to bad long-run outcomes but rules lack flexibility in the short-run"
• B)"the speed with which the self-correcting mechanism in the economy acts is in question"
• C)"the speed with which unemployment tends to disappear is debatable"
• D)all of the above
• E)none of the above

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Definitions:

Insecure and Uncertain

Feelings of lacking confidence and being unsure about one's abilities, decisions, or the future.

Little Income

Refers to a situation where an individual or household earns a relatively small amount of money.

Determinant Attributes

Key factors or characteristics that influence a consumer's choice between different products or brands.

Alternative Weights

Describes different methods or scales used to assign importance or value to variables in mathematical, statistical, or computational models.