Regarding the Issue of Economic Stability, Nonactivists Believe That

question 134

Multiple Choice

Regarding the issue of economic stability, nonactivists believe that

• A) consumption is highly unstable over the business cycle.
• B) the highest possible level of investment must be maintained over all phases of the business cycle.
• C) minor economic disturbances often feed on themselves, leading to severe swings in the business cycle.
• D) the self-correcting properties of a market economy work reasonably well.

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Definitions:

Liberal Democracy

A political system characterized by free and fair elections, rule of law, and the protection of individual rights and freedoms.

Ruling Class

The social class that holds the dominant power in a societal hierarchy, often controlling resources and making key decisions.

Autocracy

Absolute power resides in the hands of a single person or party.

Pluralist Theory

Refers to a theory in political science and sociology which suggests that power in a society is distributed among multiple groups and that this multiplicity ensures that no single group achieves dominance.