Which statement is a good argument in support of policy activism?
A)Policy lags are generally longer than the time it takes the self-correcting mechanism to work.
B)Activist policies help to ensure stability of the real interest rate.
C)Well-considered policies can assist the economy's self-correcting mechanism,thus reducing the variability of inflation and unemployment.
D)all of the above
E)none of the above

Question

Quizplus · Accepted Answer

Well-considered policies can help the economy's self-correcting mechanism, which can lead to lower variability in inflation and unemployment levels. Option A and B do not make a compelling argument in favor of policy activism. Option D broadens the scope of possible answers, but it is not necessarily the best answer in this case.

Which Statement Is a Good Argument in Support of Policy