Multiple Choice
Which of the following is true of the new classical view of stabilization policy?
A) It is necessary, but it should not be overused.
B) It is necessary during recessions but not during booms.
C) It is unnecessary because households and firms make use of all available information in forming expectations of the price level.
D) It has been very successful in the period since the Great Depression.
Correct Answer:
Verified
Correct Answer:
Verified
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Q16: Which of the following statements concerning stabilization