Which of the following is NOT a reason for the inability to stabilize output?
A) lags between observation and action
B) policy actions can immediately take effect
C) policy constraints
D) preference to maintain long-range goals

Question

Quizplus · Accepted Answer

Policy actions cannot always take immediate effect due to lags in implementation or other policy constraints. Additionally, policymakers may prioritize long-range goals over short-term output stabilization. Therefore, options A, C, and D are all possible reasons for the inability to stabilize output, while option B is not a valid reason.

Which of the Following Is NOT a Reason for the Inability