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:

Attachment Phase

A crucial period in early child development where a young child forms emotional bonds, usually with their caregivers.

Intense Dependence

A severe reliance on another person, substance, or behavior, often to the detriment of the individual's autonomy and well-being.

Ainsworth's Phases

Stages proposed by Mary Ainsworth to describe patterns of attachment behaviors exhibited by children in response to their caregivers.

Family Reunion

A gathering where members of an extended family come together, often after a long period apart, to reconnect and celebrate their relationships.