Which of the following statements about stabilization policy is not true ?

Question

Xaibi Aslam · Accepted Answer

Long lags enhance the ability of policy makers to fine tune the economy

Xaibi Aslam · Answer

Many economists prefer automatic stabilizers because they affect the economy with a shorter lag than activist stabilization policy

Xaibi Aslam · Answer

None of these answers are true

Xaibi Aslam · Answer

When policy makers implement activist stabilization policies there is a significant risk that their policies may actually have a destabilizing effect

Question #48138