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Dennis_Churaev [7]
1 year ago
8

Economic analysis suggests that countercyclical macro-policy will a. help reduce economic instability if, and only if, we are wi

lling to tolerate double-digit inflation. b. be difficult to time properly because of uncertainty about the future direction of the economy. c. reduce the natural rate of unemployment when macro-policy is persistently expansionary. d. be difficult to implement because we do not know whether monetary policy is transmitted through the interest rate, or whether it affects aggregate demand directly.
Business
1 answer:
Radda [10]1 year ago
3 0

Economic analysis suggests that countercyclical macro-policy will c. reduce the natural rate of unemployment when macro-policy is persistently expansionary.

<h3>What is Counter-cyclical fiscal policy?</h3>

Counter-cyclical fiscal policy can be regarded as the policy that  government usually used to go against the direction of the economic or business cycle.

Therefore, reduce the natural rate of unemployment when macro-policy is persistently expansionary.

Read more on human capita development here:

brainly.com/question/6583917

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  • Marginal revenue  can be regarded as central concept in microeconomics which focus on additional total revenue that us been gotten by increasing product sales by 1 unit.

  • In monopolist,it can be computed by change in total revenue with respect to a unit increase that is been sold.

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according to liquidity preference theory, a decrease in money demand for some reason other than a change in the price level caus
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According to liquidity preference theory, a drop-off in money demand for some ground other than a change in the price degree causes The interest rate to go down, so the aggregate demand shifts.

<h3>What is aggregate demand?</h3>

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