Critics of active monetary and fiscal policy emphasize
A)that policy affects the economy with a lag and our ability to forecast future economic conditions is poor.
B)"leaning against the wind" of economic change to stabilize the economy.
C)cutting government spending, raising taxes, and reducing the money supply when aggregate demand is excessive.
D)boosting government spending, lowering taxes, and increasing the money supply when aggregate demand is low.

Question

Quizplus · Accepted Answer

Critics argue that active policies can be ineffective or destabilizing due to the time lags in implementation and the difficulty in accurately forecasting future economic conditions.

Critics of Active Monetary and Fiscal Policy Emphasize