Classical Economists Would Cite All of the Following as Reasons

question 77

Multiple Choice

Classical economists would cite all of the following as reasons why the government cannot smooth out the business cycle EXCEPT that

• A)only productivity shocks can cause real fluctuations in the business cycle.
• B)the government has imperfect knowledge of the economy.
• C)political constraints on policy actions prevent the government from carrying out effective policies.
• D)time lags between the onset of a recession and the implementation of effective countermeasures make anti-recessionary macroeconomic policies impractical.

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Definitions:

Semiliquid State

A state of matter that has properties between those of a liquid and those of a solid, often demonstrating partial flow.

Partially Digested

Describes food or other substances that have been broken down to some extent by the digestive process but not yet fully.

Hemorrhoid

Swollen and inflamed veins in the lower rectum or anus, often causing discomfort, bleeding, and itching.

Anal Canal

The terminal section of the large intestine, through which feces are excreted from the body.