"Policy ineffectiveness" refers to the hypothesis that monetary and fiscal policy actions that change aggregate demand will
a. neither affect output nor employment even in the short run.
b. affect output and employment in both the short run and long run.
c. affect output but not employment in the short run.
d. not affect output but will affect employment in the long run.
A
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Investment spending is
A) directly related to the interest rate. B) inversely related to the interest rate. C) directly related to real disposable income. D) inversely related to real disposable income.
Which of the following statements regarding the unemployment rates in the U.S. between 1971 and 2002 is true?
a. The unemployment among the whites were much lower compared to the non-whites. b. The unemployment rate for all workers reached a low of 2.9 percent in 1982. c. The unemployment rate of both male and female workers have consistently increased from 1971 to 1998. d. The whites had much higher unemployment rates than the nonwhites. e. Teenagers reported the lowest unemployment rates in the country.