Stabilization Policies Have

Multiple Choice

Stabilization policies have:

A) not reduced the effects of business cycles caused by either demand shocks or supply shocks.
B) reduced the economic fluctuations caused by demand shocks but have not been effective against supply shocks.
C) reduced the economic costs of supply shocks but have not been so successful against demand shocks.
D) reduced economic fluctuations by neutralizing the effects of both supply and demand shocks.