If an Economist Who Favors a Passive Approach Observes a Drop

question 103

Multiple Choice

If an economist who favors a passive approach observes a drop in real GDP caused by a decrease in aggregate demand,she is most likely to think that

• A)the economy will recover by itself before discretionary policy can correct the situation
• B)discretionary policy will correct the situation before the economy recovers by itself
• C)the imposition of policy rules will correct the situation before the economy recovers by itself
• D)aggregate supply will decrease to compensate for the decrease in aggregate demand
• E)the economy will not recover by itself

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Definitions:

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The practice of comparing business processes and performance metrics to industry bests or best practices from other companies.

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The process of taking suggestions, concepts, or viewpoints and integrating them into a project or plan.

Benchmarking

Benchmarking involves assessing a company's procedures and performance measures by contrasting them with the best in the sector or exemplary practices of various corporations.