If a Contraction in Aggregate Demand Causes a Recession, the Great

Multiple Choice

If a contraction in aggregate demand causes a recession, the Great Moderation consensus on macroeconomics suggests that:

A) fiscal discipline with a balanced budget eventually stimulates aggregate demand.
B) fiscal policy should take the leading role in economic stabilization.
C) the use of discretionary fiscal policy is counterproductive except in special circumstances.
D) monetary discipline with a reduction in the money supply eventually stimulates aggregate demand.