Why Do the Five Debates Over Macroeconomic Policy Exist

question 15

Multiple Choice

Why do the five debates over macroeconomic policy exist?

• A) mostly because economists disagree over basic issues such as the importance of saving for economic growth
• B) mostly because there are tradeoffs and people disagree about the best way to deal with them
• C) mostly because economic policies have conflicting effects on various groups of people
• D) mostly because people fail to clearly see the benefits or the costs of most changes

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Definitions:

Stabilize The Economy

Government or central bank policies aimed at maintaining economic growth, curbing inflation, and reducing unemployment to prevent economic recessions or depressions.

Recession

A significant decline in economic activity spread across the economy, lasting more than a few months.

Society

A structured community of people bound together by similar traditions, institutions, or nationality.

Waste Of Resources

The inefficient or ineffective use of materials, energy, effort, money, or time in achieving a goal or outcome.