Which of the following statements has been proposed as a benefit of passive policy making?
A) When using passive policy making there is no tradeoff between price stability and unemployment.
B) Passive policy making allows for making immediate changes in response to an anticipated change in economic performance.
C) Passive policy making utilizes the rational expectations hypothesis.
D) Passive policy making does not wait for the time lag between recognition of a problem and policy action before engaging in economic policies to stabilize the economy.
D
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Landowners whose property is seized through eminent domain share in the gains that result from the taking of their property
Indicate whether the statement is true or false
An example of rational behavior in economics is
a. a firm seeking to minimize its losses in an economic downturn. b. a consumer wanting to maximize satisfaction. c. a country looking to maximize its output. d. All of these.
Surpluses cause prices to fall while shortages cause prices to rise
a. True b. False Indicate whether the statement is true or false
The money market achieves equilibrium when
a. individuals no longer want to spend their money b. the price of bonds rises by an appropriate amount c. buyers and sellers agree on a price for commodities d. speculative balances are reduced to a minimum e. individuals who hold bonds are satisfied with what they are holding