Advocates of Active Stabilization Policies, in Defense of Their Views

question 108

Multiple Choice

Advocates of active stabilization policies, in defense of their views, argue that

• A)stabilization is less necessary than is commonly advocated by monetarists.
• B)discretionary policy in not necessary because automatic stabilizers are sufficient.
• C)perfect stabilization is not possible, but moderate improvements in economic performance are possible, such as the response to the events of September 11, 2001.
• D)All of these responses are correct.