Which of the Following Explains Why Economic Booms and Busts

question 45

Multiple Choice

Which of the following explains why economic booms and busts cannot be avoided?

• A) The effects of fiscal and monetary policies will never be completely understood.
• B) The time lags of both fiscal and monetary policies make eliminating boom/bust cycles impossible.
• C) Economic booms/busts could be avoided, if politicians would put good economics ahead of good politics.
• D) The economy is always being struck by unavoidable shocks.

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Definitions:

Hemisphere

Half of a spherical or roughly spherical body; in geography, it refers to one half of the earth, and in neurology, it refers to one half of the brain.

Right Cerebral Hemisphere

The right half of the brain, often associated with spatial abilities, facial recognition, and processing of music and art.

Mirror

A reflective surface, typically glass coated with a metal amalgam, that reflects a clear image.

Recognize Themselves

The ability of an individual to identify and acknowledge their own reflection or representation as their own.