Which of the following policy recommendations are consistent with the classical, Keynesian, monetarist, Great Moderation consensus, expansionary

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Which of the following policy recommendations are consistent with the classical, Keynesian, monetarist, Great Moderation consensus, expansionary austerity, and secular stagnationist views of the macro economy?

a. Since the long-run growth of GDP is 2%, the money supply should grow at 2%. 

b. Decrease government spending in order to decrease inflationary pressure.

c. Increase the money supply in order to alleviate a recessionary gap.

d. Always maintain a balanced budget.

e. Decrease the budget deficit as a percent of GDP when facing a recessionary gap.

f. Pursue large, expansionary fiscal policies during a liquidity trap.

g. Maintain a 3% to 4% inflation rate today, which is necessary to fight future recessions.

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Related Book For  book-img-for-question

Macroeconomics

ISBN: 978-1319120054

3rd Canadian edition

Authors: Paul Krugman, Robin Wells, Iris Au, Jack Parkinson

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