Arguments in favour of passive economic policy include all of the following except:
A)monetary and fiscal policies work with long and variable lags, which can produce destabilizing results.
B)economic forecasts have too large a margin of error to be useful in formulating stabilization policy.
C)recessions do not reduce economic well-being, so using monetary and fiscal policy for stabilization is unnecessary.
D)it is difficult to assess the effects of different policies on the economy.

Question

Quizplus · Accepted Answer

Recessions do reduce economic well-being, which is why stabilization policies are often considered necessary.

Arguments in Favour of Passive Economic Policy Include All of the Following