Active Economic Policies Are More Likely to Destabilize the Economy

question 167

Multiple Choice

Active economic policies are more likely to destabilize the economy if:

• A) the wage- price spiral is downward sloping.
• B) policy lags are short.
• C) Say's law prevails.
• D) the wage- price adjustment is quick enough.

---

Definitions:

Mode

An average of a group of values, computed by identifying the number that occurs most often.

Monthly Revenues

The total income generated by a business or entity from its activities within a month.

Bar Graph

Also known as a bar chart, a graphic presentation of statistical information resembling the histogram except that there may not be a numeric scale on the horizontal axis and the bars normally do not touch each other.

Line Graph

A type of graph often used for illustrating data over time.