Answer:
- a. Advocates of active stabilization policy believe that the government can adjust monetary and fiscal policy to counteract waves of excessive optimism and pessimism among consumers and businesses.
- d. Opponents of active stabilization policy believe that significant time lags in both fiscal and monetary policy often exacerbate economic fluctuations.
Step-by-step explanation:
Those who believe the government should engage in stabilization policies believe that it is necessary for the government to do so because it would limit the excessive sentiments of consumers and businesses such as optimism and pessimism which affect the economy significantly as they govern consumer behavior and can either overheat the economy or lead to it underperforming.
Opponents however believe that the time it takes between the implementation of such policies and the time the policy's effects are seen, lead to worse economic fluctuations that could be avoided if the government simply stopped trying to stabilize the economy.