According to Thomas Sargent and other new classical economists,
a. a credible policy to provide low stable money growth can exist with a fiscal policy that generates large deficits.
b. a credible policy to provide low stable money growth cannot coexist with a fiscal policy that generates large deficits.
c. there is no need for a credible, noninflationary monetary policy to control the government budgetary deficit.
d. None of the above
Question 2
Policymakers utilize gross domestic product figures
a. to monitor recessions and expansions.
b. as a means to measure welfare.
c. to observe long-run growth trends.
d. Both a and c
e. All of the above
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