The government has the ability to influence the level of output in the short run using monetary and fiscal policy. There is some disagreement as to whether the government should attempt to stabilize the economy. Which of the following statements about the debate over stabilization policy are correct?

a. Advocates of active stabilization policy believe that the government can adjust monetary and fiscal policy to counteract waves of excessive optimism and pessimism among consumers and businesses.
b. Advocates of active stabilization believe that implementation lags for fiscal and monetary policy do not exist.
c. Opponents of active stabilization believe that active fiscal and monetary policies have no effect on aggregate demand.
d. Opponents of active stabilization policy believe that significant time lags in both fiscal and monetary policy often exacerbate economic fluctuations.

Question

14-05-2021
Business

contestada

The government has the ability to influence the level of output in the short run using monetary and fiscal policy. There is some disagreement as to whether the government should attempt to stabilize the economy. Which of the following statements about the debate over stabilization policy are correct?

a. Advocates of active stabilization policy believe that the government can adjust monetary and fiscal policy to counteract waves of excessive optimism and pessimism among consumers and businesses.
b. Advocates of active stabilization believe that implementation lags for fiscal and monetary policy do not exist.
c. Opponents of active stabilization believe that active fiscal and monetary policies have no effect on aggregate demand.
d. Opponents of active stabilization policy believe that significant time lags in both fiscal and monetary policy often exacerbate economic fluctuations.

Respuesta :

Otras preguntas

Bonjour, voici mon exercice Exercice 6: Le coût de la construction d'une mairie est de 3,5 millions d'€. LÉtat en prend le quart à sa charge, la Région un-septi

Give THREE examples of dangerous weight loss practices or products

Waller Comp, purchased equipment for S24,000. The company is constdenne whether to determine annual depreciation using the straight-lane method or the declitung

help plzzzzzzzzzzzzzzzz

how does cystic fibrosis increase the risk of respiratory infections such as bronchitis and pneumonia? a.by causing mucus to build up in airways. b.by destroyin

According to a report completed by Gookin (2007), nearly ____ have been incarcerated as a result of the SVP laws in the United States since 1990. As of 2007, __

What is the name of CF7

kasey are u online plz reply me 208x492

List out the role of polyploid in ornamental horticulture?

Valuing semiannual coupon bonds Bonds often pay a coupon twice a year. For the valuation of bonds that make semiannual payments, the number of periods doubles,

Parrain Parrain · Answer 1 · 2021-05-17T03:20:08+02:00

Answer:

a. Advocates of active stabilization policy believe that the government can adjust monetary and fiscal policy to counteract waves of excessive optimism and pessimism among consumers and businesses.
d. Opponents of active stabilization policy believe that significant time lags in both fiscal and monetary policy often exacerbate economic fluctuations.

Explanation:

Those who believe the government should engage in stabilization policies believe that it is necessary for the government to do so because it would limit the excessive sentiments of consumers and businesses such as optimism and pessimism which affect the economy significantly as they govern consumer behavior and can either overheat the economy or lead to it underperforming.

Opponents however believe that the time it takes between the implementation of such policies and the time the policy's effects are seen, lead to worse economic fluctuations that could be avoided if the government simply stopped trying to stabilize the economy.