Economists who view the economy as naturally stable often argue that:
A) monetary and fiscal policies should not be used to "fine-tune" the economy.
B) the economy should be stimulated when it is depressed and slowed when it is overheated.
C) the economy should be slowed when it is depressed and stimulated when it is overheated.
D) economists should act to stimulate or slow the economy on the basis of forecasts in order to assure that the policy actions are timely.
Correct Answer:
Verified
Q6: Arguments in favor of active economic policy
Q7: Fiscal policy has a relatively long _
Q8: The time between when a recession begins
Q9: The inside lag is the time:
A) before
Q10: Passive economic policy seeks to:
A) offset fluctuations
Q12: Keeping the money supply constant over the
Q13: Arguments in favor of passive economic policy
Q14: All of the following U.S. federal agencies
Q15: Economists who view the economy as inherently
Q16: The time between a shock to the
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