Multiple Choice
Why should policymakers try to stabilize the economy?
A) because shocks that cause economic fluctuations are unpredictable
B) because long lags may cause stabilization policies to have an opposite effect
C) because monetary policy affects aggregate demand by changing interest rates
D) because fiscal policy must go through a long political process
Correct Answer:
Verified
Correct Answer:
Verified
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Q35: Identify four of the six costs of
Q36: Which tax policy will lead to a
Q38: Why should policymakers NOT try to stabilize
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