To Close an Inflationary Gap, the Great Moderation Consensus on Macroeconomics

Multiple Choice

To close an inflationary gap, the Great Moderation consensus on macroeconomics suggests that:

A) a close coordination of fiscal and monetary policy is crucial.
B) the automatic fiscal stabilizers are powerful enough to bring the economy back to equilibrium.
C) policy makers should wait until a negative productivity shock brings the economy back to equilibrium.
D) monetary policy should take the leading role in economic stabilization.