Active Stabilization Policy May Actually Destabilize the Economy Since Policy

question 33

Multiple Choice

Active stabilization policy may actually destabilize the economy since policy makers

• A)do not know the exact length of policy lags
• B)often do not know whether a disturbance is permanent or transitory
• C)base their decisions on incomplete information about the economy
• D)cannot take into account how individuals' expectations are affected by policy changes
• E)all of the above

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A method of marketing where consumers are given the opportunity to use a product or service for a limited time to test its effectiveness or suitability.

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