If a Group of Economists Believes the Following Points Are

question 45

Multiple Choice

If a group of economists believes the following points are true, which is likely to be their policy making stance?
∙ Aggregate demand shocks have no long run effect on real Gross Domestic Product (GDP) or unemployment.
∙ Pure competition is widespread throughout the economy.
∙ Real wages are flexible.
∙ The Phillips Curve trade-off does not exist in the long run.

• A)They will support active policy making.
• B)They will support passive policy making.
• C)They will support discretionary policy making.
• D)They will argue that any attempt at economic policy making is futile.

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Definitions:

Predictability

The degree to which future events or behaviors can be anticipated based on current knowledge or past experience.

Stability

The quality of being resistant to change, disruption, or deterioration, often used to describe systems or relationships.

Adapt And Grow

The ability to adjust to new conditions or challenges and use them as opportunities for personal development and improvement.

Qualitative Changes

Shifts or transformations in the nature, form, or category of phenomena, rather than merely in amount or size.