Mainstream economists support:
A) Adoption of a monetary rule for increases in the money supply
B) Elimination of efficiency wages and insider-outsider relationships
C) The requirement that the government annually balance its budget
D) The use of discretionary monetary and fiscal policy for achieving major economic goals

Question

Quizplus · Accepted Answer

Mainstream economists support the use of discretionary monetary and fiscal policy for achieving major economic goals, such as reducing unemployment during a recession and stabilizing prices. They do not typically advocate for a monetary rule for increases in the money supply, the elimination of efficiency wages and insider-outsider relationships, or the requirement that the government annually balance its budget.

Mainstream Economists Support