Arguments in Favour of Active Economic Policy Include All of the Following

question 28

Multiple Choice

Arguments in favour of active economic policy include all of the following except:

• A)failing to use monetary and fiscal policy leads to inefficient fluctuations in output and employment.
• B)policymakers can make precise forecasts about the economy and the effects of their policies.
• C)fluctuations in real GDP have been less severe following World War II than prior to World War I.
• D)failure of policymakers to respond to large contractionary shocks to private spending caused the Great Depression.

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Definitions:

Sole Proprietorship

A business structure where a single individual owns, manages, and is responsible for all aspects of the business.

State

A political entity characterized by a defined territory, population, and government with sovereignty over its domestic and international affairs.

Sole Proprietorships

A form of business entity owned and run by one individual where there is no distinction between the owner and the business.

Million

A numerical term representing one thousand thousands, or 1,000,000, used often to describe quantities or amounts in demographic, financial, and statistical data.