Multiple Choice
Which of the following is true of the new Keynesian view of stabilization policy?
A) It is necessary because shifts in aggregate demand are the main source of movements in current output.
B) It is necessary during recessions but not during booms.
C) It is unnecessary because output fluctuations reflect productivity disturbances.
D) It is unnecessary because output fluctuations are largely the result of policy mistakes by the Fed.
Correct Answer:
Verified
Correct Answer:
Verified
Q83: In the new Keynesian view, an increase
Q84: Which of the following accurately describes the
Q85: The finding that output declines following the
Q86: Christina and David Romer identify six independent
Q87: New Keynesian economists provide which two reasons
Q88: According to new Keynesians, which of the
Q90: New classical economists attribute the link between
Q91: An expected change in the money supply
Q92: In comparing the views of economists on
Q93: Milton Friedman and Anna Schwartz conclude that<br>A)output