The fact that severe fluctuations in inflation and unemployment are socially undesirable helps make the case for
A)a "hands off" policy by the government.
B)fixed prices and wages.
C)active government stabilization policy.
D)restrictions on imports from low wage countries.

Question

Quizplus · Accepted Answer

Severe fluctuations in inflation and unemployment can have negative impacts on the overall economy and individuals within it. Therefore, an active government stabilization policy, which includes measures such as fiscal and monetary policy, can help to smooth out these fluctuations and promote a more stable and sustainable economy. A "hands off" policy by the government or restrictions on imports from low wage countries are not necessarily effective solutions to address these issues, and fixed prices and wages may actually exacerbate inflation and unemployment fluctuations.

The Fact That Severe Fluctuations in Inflation and Unemployment Are