Activists believe that
A) discretionary changes in macroeconomic policy can help smooth the ups and downs of the business cycle.
B) balancing the federal budget is of primary importance to economic stability.
C) the economy's self-correcting mechanism, if not stifled by perverse policies, will prevent prolonged periods of high unemployment.
D) the M1 money supply should be increased at a steady annual rate.

Question

Quizplus · Accepted Answer

Activists typically support the use of discretionary macroeconomic policies, such as fiscal and monetary interventions, to mitigate the fluctuations of the business cycle and stabilize the economy.

Activists Believe That