Mainstream Macroeconomics Has Embraced the

Multiple Choice

Mainstream macroeconomics has embraced the

A) rational expectations view that stabilization policy is totally ineffective.
B) monetarist view that the Fed should increase the money supply at a fixed annual rate.
C) rational expectations view that expectations can shift the aggregate demand and aggregate supply curves.
D) monetarist view that an increase in government spending crowds out an equal amount of investment spending.