Which of the following is a belief generally held by individuals who are opposed to using policy to stabilize the economy?
A) that neither fiscal policy nor monetary policy has much impact on aggregate demand
B) that attempts to stabilize the economy can increase the magnitude of economic fluctuations
C) that unemployment and inflation are NOT cause for much concern
D) that unemployment is a cause for concern, but inflation is NOT

Question

Which of the following is a belief generally held by individuals who are opposed to using policy to stabilize the economy?  
A) that neither fiscal policy nor monetary policy has much impact on aggregate demand 
B) that attempts to stabilize the economy can increase the magnitude of economic fluctuations 
C) that unemployment and inflation are NOT cause for much concern 
D) that unemployment is a cause for concern, but inflation is NOT

Quizplus · Accepted Answer

Individuals who are opposed to using policy to stabilize the economy often believe that such attempts can inadvertently increase the magnitude of economic fluctuations rather than smoothing them out. This is because they think policy interventions can lead to unintended consequences that may exacerbate economic problems.

Which of the Following Is a Belief Generally Held by Individuals