Which of the following is NOT an argument of non-activists?
A)Private expenditures tend to be stable.
B)Monetary policy is impotent relative to fiscal policy.
C)Prices are flexible in the long-run.
D)Government actions may be destabilizing.

Question

Quizplus · Accepted Answer

The argument that monetary policy is impotent relative to fiscal policy is typically made by activist economists who argue for government intervention to stabilize the economy. Non-activists, on the other hand, tend to argue that private expenditures are stable, prices are flexible in the long-run, and government actions may be destabilizing.

Which of the Following Is NOT an Argument of Non-Activists