Which statements do economists NOT agree on?
A) Increases in the money supply shift aggregate demand to the right.
B) In the long run, increases in the money supply increase prices, but not output.
C) Recessions are associated with decreases in consumption, investment, and employment.
D) Government should use fiscal policy to try and stabilize the economy.

Question

Quizplus · Accepted Answer

Economists generally agree on the effects of monetary policy on aggregate demand and prices (A and B), and the characteristics of recessions (C). However, there is significant disagreement among economists regarding the use of fiscal policy to stabilize the economy (D), with debates on its effectiveness, timing, and potential for causing long-term fiscal issues.

Which Statements Do Economists NOT Agree On