Which of the following directly influences the distance between the origin and the policy frontier?
A) the effectiveness of fiscal policy
B) the strength of the links between the intermediate targets of monetary policy and the corresponding final targets
C) inefficiency in the labor market and the reflection of labor surplus in wage inflation
D) the degree to which rational expectations cause policy options to become more or less effective in the long run
E) none of the above

Question

Quizplus · Accepted Answer

The Answer of Which of the following directly influences the distance between the origin and the policy frontier?
A) the effectiveness of fiscal policy
B) the strength of the links between the intermediate targets of monetary policy and the corresponding final targets
C) inefficiency in the labor market and the reflection of labor surplus in wage inflation
D) the degree to which rational expectations cause policy options to become more or less effective in the long run
E) none of the above

Which of the Following Directly Influences the Distance Between the Origin