Critics of Stabilization Policy Argue That

question 146

Multiple Choice

Critics of stabilization policy argue that

• A)policy affects aggregate demand quickly, but the effects on aggregate demand are long-lived.
• B)policy affects aggregate demand with a lag, and the effects on aggregate demand are long-lived.
• C)policy affects aggregate demand with a lag, but the effects are short-lived.
• D)policy does not affect aggregate demand.

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Definitions:

Significance

The quality of being worthy of attention; importance.

Observed Difference

An observed difference refers to a noticeable disparity or variation between two or more entities, conditions, or data points, as discerned through observation or analysis.

Illusory Correlation

A cognitive bias that occurs when people perceive a relationship between two variables even when none exists, often leading to stereotyping or erroneous beliefs.

Variables

Elements, features, or factors that are likely to vary or change within the scope of a study, research, or experiment.