Asked by Alanna Davis on Jun 28, 2024
Verified
Suppose that changes in aggregate demand tended to be infrequent and that it takes a long time for the economy to return to long-run output. How would this affect the arguments of those who oppose using policy to stabilize output?
Aggregate Demand
The aggregate need for every product and service in an economy, measured at a specific overall price level during a certain time frame.
Long-run Output
The maximum amount of goods and services an economy can produce when it fully utilizes its resources, typically considered over a period where all inputs can be adjusted.
- Evaluate the key propositions advocating for and contesting the implementation of economic stability measures.
Verified Answer
Learning Objectives
- Evaluate the key propositions advocating for and contesting the implementation of economic stability measures.
Related questions
To Stabilize the Economy Rational Expectations Theorists Favor the Use ...
Economists Predict the Business Cycle Well Enough That Stabilization Policy ...
One Prominent Debate Over Macroeconomic Policy Centers on the Question ...
Milton Friedman,a Leading Monetarist,believes the Fed Should Not Manage the ...
Which One of the Following Statements Best Describes the Monetarist ...