Which of the Following Is an Argument Against Using Policy

question 39

Multiple Choice

Which of the following is an argument against using policy to stabilize the economy?

• A)Recessions represent a waste of resources.
• B)Pessimism on the part of households and firms may become a self-fulfilling prophecy.
• C)"Leaning against the wind" requires policymakers to increase aggregate demand in recessions and reduce aggregate demand in booms.
• D)Macroeconomic forecasting is not developed sufficiently to allow policymakers to change aggregate demand at the proper time.

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Definitions:

Ecdysozoa

Protostome characterized by periodic molting of the exoskeleton. Includes roundworms and arthropods.

Spiralia

Classification of invertebrate animals that includes the lophotrochozoans and platyzoans.

Tapeworm

A type of parasitic flatworm that lives in the digestive tract of vertebrates as adults and often causes illness.

Proglottids

Segments that make up the body of tapeworms, each containing a complete set of reproductive organs, and capable of developing into a new organism.