Most economists agree that
A) fiscal policy is a more effective stabilization tool than monetary policy.
B) it is difficult to time discretionary changes in macro-policy in a manner that will promote stability.
C) monetary policy should focus on reducing unemployment, while fiscal policy should focus on the control of inflation.
D) discretionary macro-policy can easily be instituted in a manner that will promote economic stability.

Question

Quizplus · Accepted Answer

While there is debate among economists about the effectiveness of fiscal versus monetary policy, most agree that it is difficult to time discretionary changes in macro-policy in a way that promotes stability. The complexity of the economy and the difficulty of predicting future economic conditions make it challenging to implement macroeconomic policies that will achieve their intended goals without causing unintended consequences.

Most Economists Agree That