One of the Strongest Arguments Against Active Stabilization Policy Is

question 104

Multiple Choice

One of the strongest arguments against active stabilization policy is

• A)that recognition lags make timely intervention very difficult.
• B)the economy corrects itself very slowly.
• C)the inability of economic theory to suggest appropriate policy.
• D)the difficulty of obtaining agreement on monetary policy.

---

Definitions:

Subsystem

A smaller component of a larger system.

Open System

An organization or entity that interacts with its environment by exchanging information, resources, and influences with its context.

Closed System

An organizational model that operates independently of external influences, focusing inwardly for resources and information.

Linear Programming

A mathematical technique for optimizing a linear objective function, subject to linear equality and inequality constraints.