Which Statement Do Opponents of Active Stabilization Policy Believe

question 11

Multiple Choice

Which statement do opponents of active stabilization policy believe?

• A) A monetary policy designed to offset changes in the unemployment rate is effective.
• B) Fiscal policy is unable to change aggregate demand or aggregate supply.
• C) The political process creates lags in the implementation of fiscal policy.
• D) Fluctuations would not exist in the absence of fiscal policies.

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