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Economics Mcqs
Q
Which of the following statements about stabilization policy is not true ?
AA. Many economists prefer automatic stabilizers because they affect the economy with a shorter lag than activist stabilization policy
BB. None of these answers are true
CC. Long lags enhance the ability of policy makers to fine tune the economy
DD. When policy makers implement activist stabilization policies there is a significant risk that their policies may actually have a destabilizing effect
Correct Answer:
C. C. Long lags enhance the ability of policy makers to fine tune the economy
