Which statement about stabilisation policy is NOT true?

1. A Option A: Many economists prefer automatic stabilisers because they affect the economy with a shorter lag than activist stabilisation policy
2. B Option B: When policy makers implement activist stabilisation policies there is a significant risk that their policies may actually have a destabilising effect
3. C Option C: Long lags enhance the ability of policy makers to fine tune the economy
4. D Option D: None of these answers are true

Answer checked 11 October 2026 · How we write and check questions