All of the following are arguments against stabilization policy except
a. Economic forecasting is highly imprecise.
b. Long lags may cause stabilization policies to in fact destabilize the economy.
c. Monetary policy affects aggregate demand by changing interest rates.
d. Fiscal policy must go through a long political process.
c
You might also like to view...
Establishing a state employment agency that speeds up the process of matching unemployed workers with unfilled jobs is an attempt to lower
A) unnatural unemployment. B) seasonal unemployment. C) cyclical unemployment. D) frictional unemployment. E) structural unemployment.
Refer to Figure 14.3. To maximize total wages paid to workers, the labor union will agree to wage rate:
A) W0. B) W1. C) W2. D) W3. E) none of the above
Which of the following is NOT studied in microeconomics?
A) the effect of an increase in gasoline taxes on the purchase of gasoline B) the impact of an increase in the unemployment rate on economic production C) the impact of firms' collective hiring choices on the aggregate unemployment rate D) the impact of higher fuel prices on the cost of airline tickets
All types of unemployment are harmful to the economy
a. True b. False