The primary argument against active monetary and fiscal policy is that
a. attempts to stabilize the economy do not constitute a proper role for government in a democratic society.
b. these policies affect the economy with a long lag.
c. these policies affect the economy too quickly and with too much impact.
d. history demonstrates that interest rates respond unpredictably to active policies, leading to unpredictable effects on income.
b
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U.S. monetary policy in the early 1980s reduced the inflation rate by more than half
a. True b. False Indicate whether the statement is true or false
Answer the question based on the following list of factors that are related to the aggregate demand curve.
Which of the above factors best explain the downward slope of aggregate demand curve?
A. 2, 4, and 6
B. 7, 9, and 10
C. 1, 3, and 8
D. 4, 6, and 7