If output adjusts _____ to the natural rate level, and if time lags between policy actions and changes in aggregate output are relatively _____, then the case for activist policy is weakened.
Which of the following statements describe nonactivists’ policy views?
Which of the following statements describe nonactivists’ policy views?
Nonactivists argue that
Nonactivists
Nonactivists contend that an activist policy of shifting the aggregate _____ curve will be costly because it produces _____ volatility in both the price level and output.
Monetarists contend that a policy of shifting the aggregate demand curve will be costly because it produces more volatility in both the price level and output. Thus monetarists favor
The existence of long and variable policy lags tends to support
The existence of lags prevents the instantaneous adjustment of the economy to policies changing aggregate demand, thereby strengthening the case for
The existence of lags prevents the instantaneous adjustment of the economy to policies changing aggregate demand, thereby strengthening the case for
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