Those who prefer that the Fed react to negative supply shocks by tolerating higher rates of inflation as a means of moderating a recession are called
A) inflation doves
B) inflation hawks
C) monetarists
D) Keynesians
E) hard headed and soft hearted

Question

Quizplus · Accepted Answer

Those who prefer that the Fed react to negative supply shocks by tolerating higher rates of inflation are typically known as inflation doves. This approach is often associated with Keynesian economics, which emphasizes the importance of government intervention in the economy during recessions.

Those Who Prefer That the Fed React to Negative Supply