If the self-correcting mechanism operates quickly,
A) direct intervention is less necessary to close a recessionary gap.
B) fiscal stimulus is far more useful in closing a recessionary gap than monetary policy.
C) monetary policy is far more useful in closing a recessionary gap than fiscal policy.
D) fiscal stimulus is ineffective and inflation will occur.
Correct Answer:
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Q158: Figure 33-8 Q159: Figure 33-8 Q160: Figure 33-8 Q161: If employees and employers always accurately predict Q162: Based on the evidence, most economists believe Q164: Policymakers who believe that the costs of Q165: Many economists think that, in the long Q166: A vocal minority of economists, believers in Q167: If actual inflation differs from expected inflation, Q168: What will tend to happen to wages Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents
