Weaken the arguments for active government policy

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Which of the following events would strengthen the arguments for using an active government stabilization policy, and which would weaken the arguments for active government policy? Explain why in each case.

a. Structural changes make wages adjust more quickly than before in response to the level of unemployment in the economy.

b. New statistical methods improve the accuracy of economic forecasts.

c. In the next presidential election year, one party wins control of both houses of Congress and of the Presidency.

Reference no: EM131099404

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