The existence of lags prevents the instantaneous adjustment of the economy to policies changing aggregate demand,thereby strengthening the case for ________ policy.
A)supply-side
B)nondiscretionary
C)discretionary
D)demand-management

Question

Quizplus · Accepted Answer

Nondiscretionary policy, such as automatic stabilizers, adjusts automatically with economic conditions, reducing the impact of lags in policy implementation.

The Existence of Lags Prevents the Instantaneous Adjustment of the Economy