When Making a Case Against Active Stabilization Policies, What Do

question 56

Multiple Choice

When making a case against active stabilization policies, what do some economists argue?

• A) Monetary policy should not be used to stabilize the economy.
• B) Policy instruments cannot be used to achieve long-term goals.
• C) Fiscal policies are theoretically invalid as instruments for stabilizing the economy.
• D) The impact of policies does not last long enough for the problem to be solved.

---

Definitions:

Institutional Theory

A theory on the deeper, more resilient aspects of social structure that considers the processes by which structures, including schemas, rules, norms, and routines, become established as authoritative guidelines for social behavior.

Goal Displacement

A phenomenon where the original objectives of an entity or project are overshadowed by new, sometimes unrelated goals over time.

Task Environment Theory

A concept in organizational behavior that examines external factors that potentially affect an organization's performance, such as competition and regulation.

Resource Dependence

The theory that organizations depend on resources from their environment to survive, which influences their behavior and strategies to obtain those resources.