souper.gloo
New member
The government has the ability to influence the level of output in the short run using monetary and fiscal policy. There is some disagreements as to whether the government should attempt to stabilize the economy.
We're suppose to select all the statements that apply in regards to which of the following statements about the debate over stabilization are correct?
1. Advocated of active stabilization believe that implementation lags for fiscal and monetary policy do not exist.
2. People oppose to active stabilization believe that active fiscal and monetary policies have no effect on aggregate demand.
3. Advocates of active stabilization believe that automatic stabilizers have no effect on aggregate demand.
4. Supporters of active stabilization police believe that the government can adjust monetary and fiscal policy to counteract waves of excessive optimism and pessimism among consumers and businesses.
Which of these (all that apply) are correct?
Any help is appreciated, Thank you!
We're suppose to select all the statements that apply in regards to which of the following statements about the debate over stabilization are correct?
1. Advocated of active stabilization believe that implementation lags for fiscal and monetary policy do not exist.
2. People oppose to active stabilization believe that active fiscal and monetary policies have no effect on aggregate demand.
3. Advocates of active stabilization believe that automatic stabilizers have no effect on aggregate demand.
4. Supporters of active stabilization police believe that the government can adjust monetary and fiscal policy to counteract waves of excessive optimism and pessimism among consumers and businesses.
Which of these (all that apply) are correct?
Any help is appreciated, Thank you!