Critics of stabilization policy argue that: a. there is a lag between the time policy is passed and the time policy has an impact on the economy.
b. the impact of policy may last longer than the problem it was designed to offset.
c. policy can be a source of, instead of a cure for, economic fluctuations.
d. All of the above are correct.

All of the above are correct.

Explanation:

Critics of stabilization policy argue that there is a lag between the time policy is passed and the time policy has an impact on the economy, the impact of policy may last longer than the problem it was designed to offset and policy can be a source of, instead of a cure for, economic fluctuations.

We require stabilization policy to keep economy stable. Contractionary policies during inflation and expansionary during recession keeps the economy stable. But there is time lag between policy required and acted upon because it takes time to understand the situation and making and implementing the policy.

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