Why should policymakers NOT try to stabilize the economy?
A) because recessions represent a waste of resources
B) because pessimism on the part of households and firms may become a self-fulfilling prophecy
C) because "leaning against the wind" requires policymakers to increase aggregate demand in recessions and reduce aggregate demand in booms
D) because macroeconomic theory is not developed sufficiently to show policymakers how to change aggregate demand
Correct Answer:
Verified
Q4: What is the principal reason that monetary
Q5: Which of the following will time inconsistency
Q7: Suppose the economy goes into recession. Which
Q8: Which of the following do opponents of
Q10: How is "leaning against the wind" exemplified?
A)by
Q11: Those who desire that policymakers stabilize the
Q12: Why should policymakers try to stabilize the
Q13: Which of the following is one reason
Q14: Which of the following might offset the
Q38: Suppose people in countries that have had
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