An adverse supply shock will cause output. Fiscal Policy refers to the various decisions undertaken by the government regarding public expenditures and revenue. Shouldn’t feel guilt to tip Privacy Policy Q1 THE VARIOUS QUESTION ASKED IN THIS CASE ARE: If Canada's national saving exceeds is domestic investment, then Canada has, If a country has net exports of $8 billion and sold $40 billion of goods and services aboard, then it has. The primary argument against active monetary and fiscal policy is that these policies affect the economy with a substantial lag. there is a lag between the time policy is passed and policy has an impact on the economy. 4. instead of a cure for, economic fluctuations. b. the impact of policy may last longer than the problem it was designed to offset. According to liquidity preference theory, the opportunity cost of holding money is, Other things the same, a decrease in the U.S. interest rate. 3. Shop which of the following is a lesson concerning shifts in aggregate demand? The Company enjoyed high profitability, and was able to keep its costs at a ... ...CASE – PROF. TOM AND MONETARY POLICY: (Figure out CORRECT answer). critics of stabilization policy argue that a. there is a lag between the time policy is passed and the time policy has an impact on the economy b. the impact of policy may last longer than the problem it was designed to offset c. policy can be a source of, instead of a cure for, economic fluctuations d. all of the above are correct Interest rate is price of the money p... ...Policies against the Jews There are a large number of sub-policies that are encompassed by the fiscal system. By the time the change in fiscal policy is passed and ready to implement, the condition of the economy may well have changed. 2013. longer than the problem it was designed to offset. This preview shows page 20 - 21 out of 21 pages. Web. Critics of stabilization policy argue that a. there is a lag between the time policy is passed and policy has an impact on the economy. Critics of stabilization policy argue that. These critics advocate a passive monetary policy, such as slow and steady growth in the money supply. Advertise | All of the above are correct. A stabilization policy is an action taken to move the economy closer to full employment or potential output. | Resources, The Case Against Active Stabilization Policy, How to make Money by Investing in Cryptocurrency, The Best Strategies for How to Pick Stocks, Little Kona Is A Small Coffee Company That Is Considering Entering A Market Dominated By Big Brew, Hi-tech Printing Company Invents A New Process That Sharply Reduces The Cost Of Printing Books. economy. They claim that the Fed often reacts too late to changing economic conditions and, as a result, ends up being a cause of rather than a cure for economic fluctuations.