An advantage of macroeconomic policy based on pre-specified rules might be that ________.
A)it is easier to stick to long-run considerations and avoid bad long-run outcomes
B)it is more flexible than discretionary policy
C)it is easier to adapt to short-run changes and avoid a bad short-run outcome
D)all of the above
E)none of the above

Question

Quizplus · Accepted Answer

Pre-specified rules provide a framework for decision-making in macroeconomic policy that is based on long-term considerations rather than short-term expediency. This reduces the risk of policymakers deviating from optimal long-term outcomes due to political pressures or ideological biases.

An Advantage of Macroeconomic Policy Based on Pre-Specified Rules Might