Which of the Following Statements Is Broadly Agreed Upon by Modern

Multiple Choice

Which of the following statements is broadly agreed upon by modern macroeconomists?

A) Monetary and fiscal policy can both be effective at decreasing unemployment in the short run but not in the long run.
B) Discretionary fiscal policy is typically an effective remedy for a recessionary gap except in special circumstances.
C) The central bank should set a specific target rate of inflation.
D) A monetary rule should be set by the central bank.