Asked by
Paula Adkins
on Nov 16, 2024
Verified
Opponents of active stabilization policy
A) advocate a monetary policy designed to offset changes in the unemployment rate.
B) argue that fiscal policy is unable to change aggregate demand or aggregate supply.
C) believe that the political process creates lags in the implementation of fiscal policy.
D) feel that fiscal and monetary policy should only be used to counteract short-run fluctuations but not long-run goals.
Active Stabilization Policy
Government policies aimed at reducing economic fluctuations through fiscal and monetary actions.
Fiscal Policy
Government policies related to taxation and spending that aim to influence economic conditions.
Monetary Policy
The set of actions by a central bank or monetary authority to control the supply of money and interest rates in its economy.
- Analyze the impact of fiscal policy timing on the economy's adaptation to short-range and long-range targets.
Verified Answer
BS
Learning Objectives
- Analyze the impact of fiscal policy timing on the economy's adaptation to short-range and long-range targets.