Which of the Following Is an Argument Against Trying to Use

question 20

Multiple Choice

Which of the following is an argument against trying to use 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:

Freedom

The condition or right of being able to act, speak, or think as one wants without hindrance or restraint.

Socially Expected

Behaviors or actions that are considered normal or requisite according to societal standards.

Obedience

The act of following commands or instructions, often given by a figure of authority, without questioning.

Experimenter

An individual who conducts experiments to test hypotheses or explore new knowledge within scientific studies.