Which of the following do critics of stabilization policy argue?
A)There is a too short lag between the time policy is passed and policy has an impact on the economy.
B)The impact of policy may not last enough such that the problem it was designed to offset is solved.
C)Policy cannot cause economic fluctuations.
D)Policy can be a source of, instead of a cure for, recessions.

Question

Quizplus · Accepted Answer

Critics argue that stabilization policy can sometimes destabilize the economy by causing or exacerbating economic fluctuations, rather than preventing them.

Which of the Following Do Critics of Stabilization Policy Argue