Multiple Choice
Most economists agree that
A) fiscal policy is a more effective stabilization tool than monetary policy.
B) it is difficult to time discretionary changes in macro-policy in a manner that will promote stability.
C) monetary policy should focus on reducing unemployment, while fiscal policy should focus on the control of inflation.
D) discretionary macro-policy can easily be instituted in a manner that will promote economic stability.
Correct Answer:

Verified
Correct Answer:
Verified
Q135: Suppose the annual rate of inflation has
Q136: After an extended period of steady inflation
Q137: Incorporation of expectations into economic decision making
Q138: According to the rational expectations theory, expansionary
Q139: The variables in the index of leading
Q141: According to the adaptive expectations hypothesis, people
Q142: Under the adaptive expectations theory, people persistently<br>A)
Q143: The main policy conclusion of the rational
Q144: Currently, the Federal Reserve earns approximately $90
Q145: In terms of the Phillips curve, the