Why Should Policymakers Try to Stabilize the Economy

question 114

Multiple Choice

Why should policymakers try to stabilize the economy?

• A)because economic forecasting is highly imprecise
• B)because long lags may cause stabilization policies to have an opposite effect
• C)because monetary policy affects aggregate demand by changing interest rates
• D)because fiscal policy must go through a long political process

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Definitions:

Nausea

A symptom where there is a sensation of an urge to vomit.

Wrong Chart

A medical error involving the use or reference of the incorrect patient's medical record, potentially leading to inappropriate patient care or treatment.

Correction Fluid

A white, opaque fluid applied to paper to cover mistakes like typographical errors, allowing for correction or rewriting over the area.

Mistaken Entry

An incorrect or erroneous entry into records or data, often requiring correction to maintain accuracy.