Arguments in Favor of Active Economic Policy Include All of the Following

Multiple Choice

Arguments in favor of active economic policy include all of the following except:
A) failing to use monetary and fiscal policy leads to inefficient fluctuations in output and employment.
B) the Great Depression could have been avoided if the Federal Reserve had pursued a policy of steady money growth.
C) fluctuations in real GDP have been less severe following World War II than prior to World War I.

A) failure of policymakers to respond to large contractionary shocks to private spending caused the Great Depression.