Advocates of nondiscretionary policy contend that a discretionary policy of shifting the aggregate ________ curve will be costly because it produces ________ volatility in both the price level and output.

Question

Quizplus · Accepted Answer

Advocates of nondiscretionary policy argue that discretionary policies, which involve actively shifting the aggregate demand curve, can lead to greater volatility in both price levels and output due to the time lags and uncertainties involved in implementing such policies.

Advocates of Nondiscretionary Policy Contend That a Discretionary Policy of Shifting