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:

Keyword Method

A mnemonic device that involves associating a familiar word with a new word or information to facilitate recall.

Carleton University

A public research university in Ottawa, Ontario, Canada, known for its strong programs in journalism, public affairs, and international affairs.

Midterm

An examination administered in the middle of an academic term or period of instruction to assess student learning to that point.

Psychology

The scientific study of the mind and behavior, encompassing various aspects of the conscious and unconscious experience.