Suppose That Changes in Aggregate Demand Tended to Be Infrequent

question 32

Essay

Suppose that changes in aggregate demand tended to be infrequent and that it took a long time for the economy to return to long-run output. How would this affect the arguments of those who oppose using policy to stabilize output?

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Definitions:

End Justifies

A philosophical principle suggesting the morality of an action can be determined by its outcome or intended result.

Means

Methods or ways employed to achieve a certain end or goal.

Rule Utilitarianism

A form of utilitarianism that suggests the best action is one that conforms to a rule that leads to the greatest good.

Greatest Good

A principle often associated with utilitarianism, focusing on actions that produce the highest level of happiness or benefit for the greatest number of people.