Question

Which of the following statements about the debate over stabilization policy are correct? Check all that apply. Advocates of active stabilization believe that automatic stabilizers have no effect on aggregate demand. Opponents of active stabilization policy believe that significant time lags in both fiscal and monetary policy often exacerbate economic fluctuations. Advocates of active stabilization believe that implementation lags for fiscal and monetary policy do not exist. Opponents of active stabilization believe that active fiscal and monetary policies have no effect on aggregate demand.

Answer 1

Answer:

the answers for your question are A and D

Answer 2

Answer:

Advocates of active stabilization policy believe that the government can adjust monetary and fiscal policy to counteract waves of excessive optimism and pessimism among consumers and businesses.

Opponents of active stabilization policy believe that significant time lags in both fiscal and monetary policy often exacerbate economic fluctuations.

Explanation:

Stabilizations policies are policies made by the government of a certain country in order to correct or modify the problems that the economy has, often when in recession the governements take certain actions like lowering tax rates, or interests rates in order t o increase the investment and for it to be a greater flow of cash in the economy, the advocates of active stabilization policies have the idea that the government is capable of doing a fairly good job to stabilize the economy, while the opponebts feel that the monetary policies often make economic fluctiations worse.