Which of the following do critics of stabilization policy argue?
A) There is too short a lag between the time policy is passed and the time policy has an impact on the economy.
B) The impact of policy may not last long enough for the problem to be solved.
C) Policy cannot cause economic fluctuations.
D) Policy can be a source of, instead of a cure for, recessions.

Question

Quizplus · Accepted Answer

Critics of stabilization policy argue that policy can be a source of, instead of a cure for, recessions. They argue that policy interventions can create unintended consequences and distortions in the economy, potentially leading to further economic fluctuations.

Which of the Following Do Critics of Stabilization Policy Argue