All of the Following Are Arguments Against Stabilization Policy Except

question 41

Multiple Choice

All of the following are arguments against stabilization policy except

• A)Economic forecasting is highly imprecise.
• B)Long lags may cause stabilization policies to in fact destabilize the economy.
• C)Monetary policy affects aggregate demand by changing interest rates.
• D)Fiscal policy must go through a long political process.

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Definitions:

Constructivist

Pertaining to the theory that individuals construct their understanding and knowledge of the world through experiences and reflecting on those experiences.

Empiricist

A person who emphasizes the role of experience and evidence, especially sensory perception, in the formation of ideas, over the notion of innate ideas or traditions.

Reflective Music

Music specifically designed or chosen to inspire introspection and contemplation about oneself or life.

Imagination

The ability of the mind to be creative or resourceful, particularly in visualizing or forming images of things not present to the senses.