Since the 1960s, macroeconomists have become more aware
A) that increases in government expenditures are more effective than tax reductions as a source of economic stimulus.
B) that persistent inflation will reduce the unemployment rate.
C) of both the potential and the limitations of fiscal and monetary policy as stabilization tools.
D) of the fact that fiscal policy is more potent than monetary policy.

Question

Since the 1960s, macroeconomists have become more aware
A) that increases in government expenditures are more effective than tax reductions as a source of economic stimulus.
B) that  persistent inflation will reduce the unemployment rate.
C) of both the potential and the limitations of fiscal and monetary policy as stabilization tools.
D) of the fact that fiscal policy is more potent than monetary policy.

Quizplus · Accepted Answer

The statement mentions both the potential and limitations of fiscal and monetary policy as stabilization tools, indicating that macroeconomists have become aware of both the positive and negative aspects of using these policies for stabilizing the economy. None of the other options are mentioned in the statement.

Since the 1960s, Macroeconomists Have Become More Aware