Multiple Choice
In the early 1970s monetary growth was relatively stable yet unemployment and prices were quite unstable.This suggests that
A) policy activism is superior to policy rules.
B) government spending must have been destabilizing.
C) monetary rules will not iron out every short-run fluctuation resulting from shocks.
D) the government was following a monetary rule.
Correct Answer:

Verified
Correct Answer:
Verified
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