Multiple Choice
Which of the following is NOT an argument of non-activists?
A) private spending may show some instability but monetary or fiscal policy designed to stabilize it will just make things worse
B) private spending is stable partly because consumption spending is based on permanent income
C) even if prices are not completely flexible in the short-run,given time there is enough flexibility for the system to return to the natural level of real GNP
D) it is true that monetary and fiscal policy have destabilizing in the past,but economic knowledge is now advanced enough to permit effective countercyclical policy
Correct Answer:

Verified
Correct Answer:
Verified
Q105: To reduce economic volatility the Fed should
Q106: The non-activists believe that<br>A)the government has been
Q107: A monetary policy which is likely to
Q108: Expenditure changes may be potentially inequitable,as are
Q109: Which of these policy targets does NOT
Q111: In Taylor Rule equation,high value of parameter
Q112: Activists believe that postwar instability is primarily
Q113: According to the New Classical macroeconomic school,<br>A)active
Q114: Which of the following groups of economic
Q115: The increase of the real money supply