Active economic policies are more likely to destabilize the economy if the adjustment process is quick enough.

Name: Active economic policies are more likely to destabilize the economy if the adjustment process is quick enough.
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Question

Quizplus · Accepted Answer

If the adjustment process is quick, active economic policies may cause sudden shifts in the economy, leading to destabilization. Therefore, active economic policies should be implemented carefully, taking into account the timing and magnitude of the adjustments.

Active Economic Policies Are More Likely to Destabilize the Economy