According to the Monetarists,"Policy activism" is difficult if not impossible to perform successfully because
A)the timing of policy impacts on nominal GDP are known.
B)the magnitude,size of impacts are known.
C)the timing and magnitude of the impact of AD disturbances are known,forecasted with precision.
D)Monetarists believe all of the above are correct.

Question

Quizplus · Accepted Answer

Monetarists argue that policy activism is difficult because the timing and magnitude of policy impacts are uncertain, and the effects of aggregate demand disturbances cannot be precisely forecasted. They believe that these uncertainties make it hard to implement monetary policy effectively.

According to the Monetarists,"Policy Activism" Is Difficult If Not Impossible