Passive policy advocates believe that uncertain lags and ignorance about how the economy works prevent policy makers from accurately determining and effectively implementing the appropriate active policy
Indicate whether the statement is true or false
true
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John Maynard Keynes's central proposition that a dollar increase in disposable income would increase consumption, but by less than the increase in disposable income, means the marginal propensity to consume (MPC) is:
a. greater than or equal to one. b. equal to one. c. less than one, but greater than zero. d. negative.
At an antique auction, Ross hoped to purchase a mid-century coffee table for less than $400. When other bidders drove the price of the item above that level, he dropped out of the bidding. What economic concept does this story represent?
a. market efficiency b. opportunity cost c. marginal thinking d. absolute advantage
The major effects of a change in monetary policy on growth in the overall production of goods and services usually are felt within ______.
a. one month to six months b. two month to one year c. three months to two years d. one year to three years
Which is the correct statement about the relationship between government and the market?
A. Government should not intervene on any party's behalf. B. Government should intervene on the producers' behalf. C. Government should intervene on the consumers' behalf. D. Government often plays a role in disciplining the market process.