Which of the following is an argument against trying to use policy to stabilize the economy?
A)Recessions represent a waste of resources.
B)Pessimism on the part of households and firms may become a self-fulfilling prophecy.
C)"Leaning against the wind" requires policymakers to increase aggregate demand in recessions and reduce aggregate demand in booms.
D)Macroeconomic forecasting is not developed sufficiently to allow policymakers to change aggregate demand at the proper time.

Question

Quizplus · Accepted Answer

This argument suggests that policymakers lack the necessary information to make timely adjustments to aggregate demand, which could result in unintended consequences for the economy. As a result, attempts to stabilize the economy through policy intervention may be ineffective or even counterproductive.

Which of the Following Is an Argument Against Trying to Use