Advocates of policy rules rather than discretion believe that self-correction forces work too slowly when discretionary policy is used.
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Q134: The active approach to monetary policy involves
Q135: Those of the rational expectations school
A)favor monetary
Q136: Economist A.W.Phillips believed that
A)the Fed should follow
Q137: The inflation associated with the oil embargoes
Q138: The main policy conclusion of the rational
Q140: In general,the Fed has not embraced a
Q141: Exhibit 16-4 Q142: The short-run Phillips curve shows that Q143: Exhibit 16-5 Q148: The short-run Phillips curve is drawn for
A)the economy
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