Passive Economic Policy Seeks To

question 22

Multiple Choice

Passive economic policy seeks to:

• A) offset fluctuations in real GDP.
• B) use monetary and fiscal policy to shift aggregate demand.
• C) respond to changing economic conditions.
• D) take a hands-off approach to macroeconomic policy.

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Definitions:

Implied Warranty

Is an assurance automatically applied by law, suggesting that a product is fit for its intended purpose and meets a basic level of quality.

Breach of Warranty

Violation of the terms of a warranty agreement, where the goods or services provided fail to meet the standards or conditions promised.

Proximately Caused

An event sufficiently related to a legally recognizable injury to be considered the cause of that injury.

Breach of Warranty

A violation of the terms of a guarantee provided in a sales contract, where a product fails to meet the stated quality or standards.