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  3. Study Set
    Principles of Macroeconomics Study Set 8
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    Exam 21: The Influences of Monetary and Fiscal Policy on Aggregate Demand: Using Policy to Stabilize the Economy
  5. Question
    Critics of Stabilization Policy Argue That
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Critics of Stabilization Policy Argue That

Question 51

Question 51

Multiple Choice

Critics of stabilization policy argue that


A) "animal spirits" must be offset by active monetary policy.
B) active monetary policy is necessary for steady economic growth.
C) the lag problem ends up being a cause of economic fluctuations.
D) active fiscal policy is required for steady economic growth.

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