The case for government stabilization policy is made more compelling if the

Question

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If the self-correcting mechanism works very slowly, it may take a long time for the economy to return to full employment after a shock. This makes government stabilization policy more necessary and compelling to help speed up the process. If the self-correcting mechanism worked too fast, there would be little need for government stabilization policy. The value of the multiplier and the flatness of the aggregate supply curve are also important factors in determining the effectiveness of stabilization policy, but they do not necessarily make the case for it more compelling.

The Case for Government Stabilization Policy Is Made More Compelling