Designing successful economic stabilization policy is difficult since policy makers
A) never assume that an economic disturbance is temporary
B) do not have enough policy tools to deal with economic disturbances
C) do not know the expectations of consumers and firms or how they may react
D) cannot adjust the automatic stabilizers
E) all of above

Question

Designing successful economic stabilization policy is difficult since policy makers 
A)  	never assume that an economic disturbance is temporary
B)	do not have enough policy tools to deal with economic disturbances
C)	do not know the expectations of consumers and firms or how they may react
D)  	cannot adjust the automatic stabilizers 
E)  	all of above

Quizplus · Accepted Answer

Policy makers often face challenges in designing successful economic stabilization policies because they do not have perfect information about the expectations of consumers and firms or how these groups might react to policy changes. This uncertainty makes it difficult to predict the outcomes of policy interventions accurately.

Designing Successful Economic Stabilization Policy Is Difficult Since Policy Makers