1250. Principles Of Macroeconomics (Alt When suggesting to intervene in the market with a stabilization policy, the government must first recognize that any policy they introduce may Select one: O a. reduce economic fluctuations by neutralizing the effects of both supply and demand shocks. O b. reduce the economic fluctuations caused by demand shocks but will not be effective against supply shocks. O c. reduce the economic costs of supply shocks will not be so successful against demand shocks. O d. not reduce the effects of business cycles caused by either demand shocks or supply shocks. ge Next page