A problem with the use of aggregate demand management to stabilize the business cycle is that

A. fiscal policy takes a long time to have any impact on the economy.
B. monetary policy isn't available to use when interest rates are already rising because of higher inflation.
C. the precise amount that output will change in response to monetary or fiscal policy isn't known.
D. monetary policy is difficult to use, because the decision-making process is long and complicated.


Answer: C

Economics

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