Activists Believe That

Multiple Choice

Activists believe that

A) the M1 money supply should be increased at a steady rate annually.
B) taxes should be increased during a recession in order to balance the federal budget.
C) the economy's self-correcting mechanism, if not stifled by perverse policies, will prevent prolonged periods of high unemployment.
D) discretionary changes in macroeconomic policy can help smooth the business cycle of a market economy.