The Concerns of Economists Who Favor Passive Over Active Policy

question 16

Multiple Choice

The concerns of economists who favor passive over active policy are most closely associated with their:

• A) preference for using monetary policy rather than fiscal policy for stabilization.
• B) view that policy made by rules is superior to policy made by discretion.
• C) belief that shocks to modern economies are not large enough to require any policy response.
• D) doubt that the correct policy will be implemented at the correct time.

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Definitions:

Marketplace Trends

Predominant shifts or movements observed within a market or industry, influencing consumer behavior and business strategies.

Technological Environmental Force

External factors related to advancements in technology that can affect the operations and competitiveness of businesses within an industry.

Demographic Characteristics

Attributes of populations, such as age, race, gender, income, and education, used in market research and policy analysis.

Social Forces

Factors that affect society’s basic structure and the behavior of its members, including values, culture, norms, and demographic characteristics.