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:

Empirical Data

Information obtained through observation and experimentation that serves as the basis for knowledge and scientific research.

Sound Argument

A logical reasoning supported by valid evidence and reasoning, often seen in debates or persuasive writing.

Resistance To Change

Opposition or reluctance by individuals or groups within an organization to adopt new strategies, practices, or behaviors.

Informed Change Agent

An individual knowledgeable about changes needed within an organization and skilled in implementing effective strategies.