The Great Moderation consensus among macroeconomists is described by all of the following EXCEPT that:
A)monetary policy should play the main role in stabilization policy.
B)the central bank should be independent of politics.
C)discretionary fiscal policy should be used sparingly.
D)monetary policy is the only way to get out of the liquidity trap.

Question

Quizplus · Accepted Answer

The Great Moderation consensus among macroeconomists did not have a consensus that monetary policy is the only way to get out of the liquidity trap. In fact, some economists argue that fiscal policy can also be effective in such situations.

The Great Moderation Consensus Among Macroeconomists Is Described by All