According to a study by Christina Romer on macroeconomic stabilization policy in the United States after World War II,
I.macroeconomic policies likely prevented some recessions or near-recessions.
II.that there has been a rise in policy-induced recessions.
III.policymakers tend to favor monetary policy over fiscal policy.
IV.policymakers prefer to rely on the economy's self-correcting mechanism to eliminate output gaps.

Question

Quizplus · Accepted Answer

Christina Romer's study suggests that macroeconomic policies have likely prevented some recessions or near-recessions, and there has been an increase in policy-induced recessions.

According to a Study by Christina Romer on Macroeconomic Stabilization