The long-standing debate over rules versus discretion in macroeconomics centers on the following statement ________
A) "discretionary policy can lead to bad long-run outcomes but rules lack flexibility in the short-run"
B) "the speed with which the self-correcting mechanism in the economy acts is in question"
C) "the speed with which unemployment tends to disappear is debatable"
D) all of the above
E) none of the above
A
Economics
You might also like to view...
Fiscal policy tries to influence target variables by manipulating
A) money supply. B) interest rates. C) government expenditures. D) All of the above.
Economics
Entry of new firms in monopolistically competitive industries can convey a positive externality on consumers because new products result in more consumer surplus. This externality is called the
Economics