Passive Policy Advocates Rely on the Economy's Natural Ability to Correct

question 17

Multiple Choice

Passive policy advocates rely on the economy's natural ability to correct itself in case of unemployment because of:

• A)the lack of any real concern for those who have no jobs.
• B)the conviction that unemployment is relatively harmless.
• C)the belief that active economic policy is likely to be either ineffective or harmful.
• D)the desire to await further economic data before intervening.
• E)the belief in the law of diminishing returns.

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