Which of the Following Is an Argument Against Trying to Use

question 20

Multiple Choice

Which of the following is an argument against trying to use policy to stabilize the economy?

• A)Recessions represent a waste of resources.
• B)Pessimism on the part of households and firms may become a self-fulfilling prophecy.
• C)"Leaning against the wind" requires policymakers to increase aggregate demand in recessions and reduce aggregate demand in booms.
• D)Macroeconomic forecasting is not developed sufficiently to allow policymakers to change aggregate demand at the proper time.

---

Definitions:

Social Control

Mechanisms, strategies, and institutions society uses to regulate individual and group behavior to conform to societal norms and rules.

Minority Influence

Describes a situation where a smaller group within a larger society can influence the majority to accept their beliefs or behaviors.

Peripheral Route Persuasion

A method of persuasion that relies on superficial cues to promote acceptance of an argument, rather than logical reasoning.

Central Route Persuasion

A method of persuasion that involves deeply processing the content of a message, considering logical and factual arguments.