Which of the following do opponents of using policy to stabilize the economy generally believe?
A)that neither fiscal nor monetary policy have 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

Quizplus · Accepted Answer

Opponents of using policy to stabilize the economy generally believe that attempts to stabilize the economy can increase the magnitude of economic fluctuations. They argue that government interventions can disrupt the natural market forces and lead to unintended consequences, ultimately exacerbating economic fluctuations. They may also argue that the government lacks the information and resources necessary to successfully stabilize the economy.

Which of the Following Do Opponents of Using Policy to Stabilize