Multiple Choice
In practice, it is difficult to keep inflation and output from fluctuating when aggregate expenditures change because:
A) it takes time for policymakers to recognize that shifts have occurred.
B) changes in interest rates do not have an immediate impact on the economy.
C) changes in consumer or business confidence can be very difficult to recognize as they are occurring.
D) all of the answers given are correct.
Correct Answer:

Verified
Correct Answer:
Verified
Q9: Globalization and trade:<br>A) expands economic potential in
Q10: If the monetary policy reaction curve has
Q11: What is meant by saying that automatic
Q12: Policymakers can neutralize:<br>A) supply shocks, but only
Q13: Which of the following is not correct
Q15: What tool is available to monetary policymakers
Q16: Higher potential output levels:<br>A) put upward pressure
Q17: According to the NBER, a severe decline
Q18: Stagflation is a term that usually describes
Q19: If the monetary policy reaction curve has