Since the end of World War II, the economy of the United States has been more influenced by stabilization policy.One of the undesirable side effects of this has been that the economy now has a greater tendency to suffer from
A)more severe recessions and depressions.
B)higher levels of unemployment and lower rates of employment growth.
C)lower rates of growth in real and nominal GDP.
D)more persistent periods of inflation.

Question

Quizplus · Accepted Answer

Stabilization policies, aimed at reducing the severity of economic fluctuations, can lead to more persistent periods of inflation. This is because efforts to stimulate the economy or reduce unemployment through monetary or fiscal policies can, over time, contribute to sustained higher levels of inflation if not carefully managed.

Since the End of World War II, the Economy of the United