Which of the Following Do Critics of Stabilization Policy Argue

question 175

Multiple Choice

Which of the following do critics of stabilization policy argue?

• A)There is a too short lag between the time policy is passed and policy has an impact on the economy.
• B)The impact of policy may not last enough such that the problem it was designed to offset is solved.
• C)Policy cannot cause economic fluctuations.
• D)Policy can be a source of, instead of a cure for, recessions.

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Definitions:

Firms

Business organizations, such as corporations, partnerships, or sole proprietorships, that are engaged in commercial, industrial, or professional activities.

Market

A platform or area where buyers and sellers come together to exchange goods, services, or information.

Firm Revenue

The total income received by a company from its sales of goods or services before any expenses are subtracted.

Economy

The system of production, distribution, and consumption of goods and services within a geographical region.