Which statement do opponents of active stabilization policy believe?
A) A monetary policy designed to offset changes in the unemployment rate is effective.
B) Fiscal policy is unable to change aggregate demand or aggregate supply.
C) The political process creates lags in the implementation of fiscal policy.
D) Fluctuations would not exist in the absence of fiscal policies.

Question

Quizplus · Accepted Answer

Opponents of active stabilization policy argue that the political process introduces delays in the implementation of fiscal policy, making it difficult to time these policies effectively to counteract economic fluctuations.

Which Statement Do Opponents of Active Stabilization Policy Believe