Which of the following is an argument against trying to use policy to stabilize the economy?
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Business, 17.12.2019 22:31 Adreanna1018
Which of the following is an argument against trying to use policy to stabilize the economy?
a. pessimism on the part of households and firms may become a self-fulfilling prophecy.
b. recessions represent a waste of resources.
c. "leaning against the wind" requires policymakers to increase aggregate demand in recessions and reduce aggregate demand in booms.
d. macroeconomic forecasting is not developed sufficiently to allow policymakers to change aggregate demand at the proper time.
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