Which statement is TRUE of the state of modern macroeconomics?
A) There is much more consensus than disagreement among economists.
B) Inflation targeting and asset price management are incompatible duties for a central bank.
C) The federal government indirectly controls the central bank and monetary policy through its annual budget allocations.
D) The Great Recession heightened the areas of disagreement among macroeconomists over key policy questions.

Question

Quizplus · Accepted Answer

The Great Recession highlighted fundamental differences among macroeconomists in terms of their preferred policy approach, particularly on issues such as the effectiveness of fiscal stimulus, the role of financial market imperfections and the use of unconventional monetary policy. While there is some degree of consensus around certain core principles, such as the importance of price stability and the need for independent central banks, there remains significant debate over the appropriate tools to address macroeconomic problems.

Which Statement Is TRUE of the State of Modern Macroeconomics