Most economists believe that
A) the expectations of firms and consumers can be easily predicted
B) only small disturbances require active monetary policy
C) monetary policy has a shorter inside lag than fiscal policy
D) monetary policy has a shorter outside lag than fiscal policy
E) automatic stabilizers tend to make active policy largely obsolete
Correct Answer:
Verified
Q12: Economic forecasters
A)almost always time their proposed policy
Q13: Policies designed to stabilize economic activity are
Q14: Formulating an appropriate policy response to an
Q15: If it is clear that a disturbance
Q16: The inside lag is defined as the
Q18: The outside lag is defined as the
Q19: The best policy response to a disturbance
Q20: If an economic disturbance is known to
Q21: Multiplier uncertainty is a major handicap for
Q22: Active stabilization policy may actually destabilize the
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents