Which of the following statements do economists broadly consider to be TRUE?
A)A monetary rule can increase real GDP.
B)Discretionary fiscal policy is typically more effective than monetary policy in fighting recessions.
C)A nation's central bank should be managed by elected officials.
D)Discretionary monetary and fiscal policy cannot affect the long-run level of unemployment.

Question

Quizplus · Accepted Answer

Discretionary monetary and fiscal policy can influence short-term economic fluctuations but are generally not believed to affect the long-run natural rate of unemployment, which is determined by structural factors in the economy.

Which of the Following Statements Do Economists Broadly Consider to Be