Which of the following is true of the new Keynesian view of stabilization policy?
A) It is necessary because shifts in aggregate demand are the main source of movements in current output.
B) It is necessary during recessions but not during booms.
C) It is unnecessary because output fluctuations reflect productivity disturbances.
D) It is unnecessary because output fluctuations are largely the result of policy mistakes by the Fed.
Correct Answer:
Verified
Q56: Available evidence suggests that
A)only expected changes in
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Q58: In the new Keynesian view, an increase
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Q62: A recession begins, but Congress and the
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Q64: The existence of lags in the policymaking
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Q66: Which of the following accurately describes the
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