Multiple Choice
Why should policymakers NOT try 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) Economic conditions can easily change between the time when a policy action begins and when it takes effect.
Correct Answer:
Verified
Correct Answer:
Verified
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