Advocates of Passive Policy Argue That Because Monetary and Fiscal

question 3

Multiple Choice

Advocates of passive policy argue that because monetary and fiscal policy lags are:

• A) short and fixed, these policies should not be used to offset shocks.
• B) long and variable, these policies should not be used to offset shocks.
• C) short and fixed these, policies should be used to offset shocks.
• D) long and variable these, policies should be used to offset shocks.

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Definitions:

Sociocultural Factors

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Socioeconomic Status

The social standing or class of an individual or group, often measured as a combination of education, income, and occupation.

Standards of Living

The level of wealth, comfort, material goods, and necessities available to a certain socioeconomic class or geographic area.

Post-traumatic Stress Disorder

A psychiatric disorder that can occur in people who have experienced or witnessed a traumatic event, characterized by flashbacks, nightmares, severe anxiety, and uncontrollable thoughts about the event.