An Advantage of Stabilizing Macroeconomic Policy Over Economic Self-Correction Is

Multiple Choice

An advantage of stabilizing macroeconomic policy over economic self-correction is that:

A) stabilization policies achieve potential output with a lower aggregate price level.
B) economic self-correction can take a decade or more.
C) economic self-correction affects the aggregate price level but not the aggregate output level.
D) stabilization policies are particularly effective to address supply shocks.