All of the Following Are Arguments Against Stabilization Policy Except

question 41

Multiple Choice

All of the following are arguments against stabilization policy except

• A)Economic forecasting is highly imprecise.
• B)Long lags may cause stabilization policies to in fact destabilize the economy.
• C)Monetary policy affects aggregate demand by changing interest rates.
• D)Fiscal policy must go through a long political process.

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Definitions:

Goal Clarity

The extent to which the objectives to be achieved are clearly understood and defined.

Growth Needs

Psychological needs that drive individuals to achieve self-fulfillment and realize their potential.

Strategies and Action Programs

Comprehensive plans and the specific actions taken to achieve a set of goals or objectives.

Persistence

The continued or prolonged existence of something, often referring to the determination to keep going despite difficulties or obstacles.