Critics of active monetary and fiscal policy emphasize
a. that policy affects the economy with a lag and our ability to forecast future economic conditions is poor.
b. "leaning against the wind" of economic change to stabilize the economy.
c. cutting government spending, raising taxes, and reducing the money supply when aggregate demand is excessive.
d. boosting government spending, lowering taxes, and increasing the money supply when aggregate demand is low.
a
You might also like to view...
Hughes and Cain (2011) argue that the U.S. regards highly hardworking people and possesses a strong disdain for idle people, especially the rich. These views fuel animosity toward labor unions because unions
(a) threaten the private rights of business owners to utilize profits in those fashions they deem desirable. (b) force business owners to divert profits to conduct research and develop products. (c) prevent the emergence of a leisure class in the U.S. (d) all of the above.
Some of the inaccuracies in measuring GDP are attributable to
a. monopolization b. ignoring production by U.S.-owned plants abroad c. the underground economy and quality changes d. tax evasion and inflation e. short-term changes in spending