Believers in Fixed Rules Maintain That

question 61

Multiple Choice

Believers in fixed rules maintain that

• A)with accurate forecasts, we can see inflation coming at least one year ahead of time.
• B)the length of stabilization lags is not important because fiscal policy actions are taken quickly and the economy feels the effect on aggregate demand quickly.
• C)we should forget about discretionary policy and put the economy on autopilot, relying instead on automatic stabilizers and the economy's self-correcting mechanism.
• D)the economy's self-correcting mechanism is slow and not very reliable, even with automatic stabilizers.

---

Definitions:

Marketing Mix

A combination of factors controlled by a company to influence consumers to purchase its products, commonly referred to as the 4Ps: Product, Price, Place, and Promotion.

Food Truck Business

A mobile venue that serves food to customers at different locations, characterized by its ability to quickly relocate and serve various cuisines.

Busy Downtown Area

A densely populated central section of a city known for a high concentration of retail stores, businesses, and entertainment facilities, often experiencing significant foot traffic.

Communication

The exchange of information or messages between individuals through speaking, writing, or using some other medium, enabling understanding and collaboration.