Those Who Favor a Passive Approach to Policy Believe That

question 38

Multiple Choice

Those who favor a passive approach to policy believe that:

• A)discretionary monetary policy can be used to help the economy since monetary policy lags are short.
• B)discretionary fiscal policy can be used to help the economy since fiscal policy lags are short.
• C)lags associated with implementing policies are too long and unstable for discretionary policy to be effective.
• D)despite the lags involved,implementing discretionary policy is preferable to inaction.
• E)automatic stabilizers cannot be used to help the economy since monetary policy lags are short.

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Definitions:

Inspection

A means of ensuring that an operation is producing at the quality level expected.

Specific Causes

Unique factors or circumstances that can lead to specific outcomes or effects, distinguished from general or common causes.

Acceptance Sampling

A statistical quality control method where a random sample of items from a lot is inspected to decide if the whole lot should be accepted or rejected.

Defective Items

Products that fail to meet quality standards or specifications, often resulting in returns or waste.