Which One of the Following Accurately States the View of Activists

question 13

Multiple Choice

Which one of the following accurately states the view of activists who favor discretionary stabilization policy?

• A) Neither monetary nor fiscal policy will exert an impact on the real level of economic activity.
• B) Since we have only limited ability to forecast the future direction of the economy, the best policy is to do nothing.
• C) Our ability to forecast the future direction of economic activity is quite good, and therefore, discretionary macroeconomic policy is now capable of eliminating fluctuations in the business cycle if policy makers would follow the advice of leading economists.
• D) The index of leading indicators and other forecasting tools provide policy makers with valuable information that permits them to institute stabilizing changes in macroeconomic policy.

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Definitions:

Pregnant

The state of carrying a developing fetus within the female body, typically lasting about 40 weeks from the last menstrual period to childbirth.

Wheat Germ

The nutrient-rich embryo of the wheat kernel, often used as a dietary supplement due to its high content of proteins, fibers, and vitamins.

Maternal Obesity

A condition where a mother has excessive body weight before or during pregnancy, which can impact her health and the health of her offspring.

Miscarriage

The spontaneous loss of a pregnancy before the fetus is able to survive outside the uterus, typically before 20 weeks of gestation.