Question

Which of the following is not an issue with using active monetary policy to reduce business​ cycles?

A.
There is a lag in the Fed getting accurate data and being able to recognize problems existing in the economy.
B.
When the Fed engages in a policy​ action, it takes time before the action will impact the desired economic variables.
C.
Active monetary policy can sometimes create procyclical impacts on macroeconomic variables.
D.
Real GDP and employment changes from monetary policy actions can move in a countercyclical manner.

Answer 1

the one that is not an issue with using active monetary policy to reduce business cycles would be: D.Real GDP and employment changes from monetary policy actions can move in a countercyclical manner.
Countercyclical actions is every governmental actions that taken in order to REDUCE spending. Active monetary policy requires central banks to increase the money supply & circulation, so the government spending will definitely increased