The recommendation to use monetary policy to stabilize the economy and use fiscal policy only when monetary policy is ineffective is consistent with _____ macroeconomics.
A) classical
B) Keynesian
C) monetarist
D) Great Moderation consensus

Question

Quizplus · Accepted Answer

The Great Moderation consensus suggests using monetary policy as the primary tool for economic stabilization, with fiscal policy as a secondary measure when monetary policy is ineffective.

The Recommendation to Use Monetary Policy to Stabilize the Economy