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Which of the Following Statements Correctly Describes the Policy Stance

Question 64

Multiple Choice

Which of the following statements correctly describes the policy stance of a macroeconomist?


A) A new classical macroeconomist believes that fiscal and monetary policy are required to maintain full employment.
B) A monetarist believes that the quantity of money should be constantly changed in order to offset changes in aggregate demand.
C) A Keynesian believes that if taxes are always kept low and the quantity of money is kept on a steady growth path, no policy actions will be needed to maintain full employment.
D) A classical macroeconomist believes that maintaining consistently low taxes will allow the economy to expand at an appropriate and rapid pace.

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