Statement I: Policy activists believe that the economy is inherently unstable and that discretionary fiscal and monetary policies are necessary to provide economic stabilization.
Statement II: Non-interventionists believe that the economy has built-in stabilizing forces.

A) Statement I is true and statement II is false.
B) Statement I is false and statement II is true.
C) Both statements are true.
D) Both statements are false.
E) Not enough information is provided to determine if either statement is true or false.

Question

taylor rae brundige · Accepted Answer

Final Answer : C, Explanation :  Both statements accurately reflect common beliefs in economic theory. Policy activists do indeed argue for the necessity of intervention to stabilize the economy, while non-interventionists trust in the economy's inherent stabilizing mechanisms.

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