Active Policy Making Refers to

question 65

Multiple Choice

Active policy making refers to

• A)actions taken by policy makers in response to or in anticipation of some change in the overall economy.
• B)policy making that is carried out in response to a rule.
• C)relying on policies that act as automatic stabilizers.
• D)nondiscretionary policy making.

---

Definitions:

World War II

A global conflict that occurred from 1939 to 1945, involving most of the world's nations, including all of the great powers, eventually forming two opposing military alliances: the Allies and the Axis.

Disinflation

A decrease in the rate of inflation, indicating a slowdown in the rate at which prices for goods and services increase.

Rate of Inflation

The rise in the average cost of goods and services across an economy over a specific period.

Recessions

Periods of economic downturn when output and employment are falling, typically defined as two consecutive quarters of declining gross domestic product.