I'm requesting assistance with the below questions in order to prepare for an exam. The course is "Macroeconomics" author: Robert J. Gordon 11th edition text.
I'd appreciate any help with the following questions?
Question 1: According to the Monetarists, "Policy activism" is difficult if not impossible to perform successfully because
a) the timing and magnitude of the impact of AD disturbances are known, forecasted with precision
b) the timing of policy impacts on nominal GDP are known
c) the magnitude, size of impacts are known
d) monetarists believe all of the above are correct
Question 2: Which of the following is NOT an argument of non-activists?
a) prices are flexible in the long-run
b) private expenditures tend to be stable
c) government actions may be destabilizing
d) monetary policy is impotent relative to fiscal policy
Question 3: To non-activists, which of the following is the most useful stabilization policy?
a) countercyclical monetary changes
b) procyclical monetary and fiscal policy changes
c) overnment spending changes
d) none of these