One similarity between the policy recommendations of the new classical and monetarist models is that
a. both believe that monetary policy has much stronger employment effects than does fiscal policy.
b. are policy activists.
c. both believe in the natural rate of output.
d. both believe that discretion is preferable to rules.
e. none of the above.
Question 2
Which of the following governmental expenditures are not included in gross domestic product?
a. The construction of federal buildings
b. Social Security payments
c. Salaries for senators
d. Purchases of new defense weapons
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