For this question, assume that the there exists uncertainty about the impact of monetary policy on the macroeconomy. Given this information, it would be most appropriate for the central bank to increase money growth
A) at the midpoint of a recession.
B) by more than the increase that will yield the desired response.
C) by less than the increase that will yield the desired response.
D) by an amount equal to the increase that will yield the desired response.
E) only after it is certain that the economy has entered a recession.
Question 2
Assume that an economy experiences both positive population growth and technological progress. Once the economy has achieved balanced growth, we know that output (Y) is
A) constant.
B) growing at a rate of gA + gN.
C) growing at a rate of gN.
D) growing at a rate of gA.
E) growing at a rate of gA - gN.
