Proponents of Policy Activism Argue That the Time Period Required

question 57

Multiple Choice

Proponents of policy activism argue that the time period required for wages and prices to adjust during a severe recession would be

• A) intolerably long and entail great human cost.
• B) quite short and promote a quick recovery.
• C) unimportant given the relative stability of the components of private spending.
• D) shortened by balancing the federal budget.
• E) dependent on the ratio of nominal to real GDP.

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Definitions:

Herbert Simon

An American economist, political scientist, and cognitive psychologist known for his contributions to decision-making processes and artificial intelligence.

Satisfactory Alternatives

Acceptable options or solutions that are considered adequate for meeting a particular need or solving a problem, albeit not necessarily the best possible ones.

Optimal Decisions

The process of choosing the best possible solution or course of action from among various alternatives based on specific criteria and objectives.

Risk Management

Involves anticipating risks and factoring them into decision making.