When Policy Makers Take Actions in Response to or in Anticipation

question 271

Multiple Choice

When policy makers take actions in response to or in anticipation of some change in the overall economy, there is

• A) active policymaking.
• B) passive policymaking.
• C) rationalization policymaking.
• D) rational expectations policymaking.

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Definitions:

Cortisol

Glucocorticoid secreted by the adrenal cortex that responds to stress on a long-term basis; reduces inflammation and promotes protein and fat metabolism.

Adrenal Cortex

Outer portion of the adrenal gland; secretes mineralocorticoids, such as aldosterone, and glucocorticoids, such as cortisol.

Long-Term Stress

Chronic stress experienced over an extended period of time, which can negatively affect health, mood, productivity, and relationships.

ACTH

Adrenocorticotropic hormone, a pituitary gland hormone that stimulates the adrenal glands to release cortisol.