Which of the following is NOT an argument of non-activists?
A)private spending may show some instability but monetary or fiscal policy designed to stabilize it will just make things worse
B)private spending is stable partly because consumption spending is based on permanent income
C)even if prices are not completely flexible in the short-run,given time there is enough flexibility for the system to return to the natural level of real GNP
D)it is true that monetary and fiscal policy have destabilizing in the past,but economic knowledge is now advanced enough to permit effective countercyclical policy

Question

Quizplus · Accepted Answer

Non-activists typically argue against the effectiveness of monetary and fiscal policies in stabilizing the economy, suggesting that these interventions can often make things worse or are unnecessary due to the market's natural adjustments. Choice D, which suggests that current economic knowledge allows for effective countercyclical policy, contradicts the non-activist stance that generally doubts the efficacy of such interventions.

Which of the Following Is NOT an Argument of Non-Activists