Which of the following is an area of substantial agreement among macroeconomists?
A) Expansionary policies that lead to inflation can keep the actual rate of unemployment below the natural rate.
B) It is relatively easy to time shifts in monetary policy in a manner that will promote economic stability.
C) Price stability is a proper goal of monetary policy.
D) It is relatively easy to time shifts in fiscal policy in a manner that will promote economic stability.

Question

Quizplus · Accepted Answer

There is substantial agreement among macroeconomists that price stability is a proper goal of monetary policy. This is because inflation can lead to a decrease in the value of money and uncertainty in the economy. However, there is not as much agreement on the effectiveness of expansionary policies in reducing unemployment or the ability to time shifts in monetary and fiscal policy for economic stability.

Which of the Following Is an Area of Substantial Agreement