An argument in favor of allowing discretionary macroeconomic policy is that:
A) policymakers may make erratic shifts in policy in response to changing political situations.
B) uninformed policymakers may choose incorrect policies.
C) the objectives of policymakers may be in conflict with the well-being of the public.
D) giving policymakers flexibility will allow them to respond to changing conditions.

Question

Quizplus · Accepted Answer

Allowing discretionary macroeconomic policy gives policymakers the freedom to adjust policies in response to changing economic conditions, such as a sudden recession or inflation. This flexibility can help to stabilize the economy and prevent long-term economic damage. However, it is important to note that discretionary policy should be used cautiously to avoid erratic shifts in policy or policies that conflict with the well-being of the public.

An Argument in Favor of Allowing Discretionary Macroeconomic Policy Is