Which of the following statements is TRUE of the state of modern macroeconomics?
A)There is much more consensus than disagreement among economists.
B)Inflation targeting and asset price management are incompatible duties for a central bank.
C)Congress indirectly controls the Fed and monetary policy through its annual budget allocations.
D)The Great Recession heightened the areas of disagreement among macroeconomists over key policy questions.

Question

Quizplus · Accepted Answer

The Great Recession created significant disagreements among macroeconomists over key policy questions, including the effectiveness of monetary policy, the importance of fiscal stimulus, and the role of government regulation. While there is still some consensus among economists, the recession highlighted areas of disagreement and ongoing debate. Choices A, B, and C are all incorrect statements about the state of modern macroeconomics.

Which of the Following Statements Is TRUE of the State