What Is Public Opinion? Describe Its Components, and Illustrate Your

question 36

Essay

What is public opinion? Describe its components, and illustrate your answer with an example.

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Definitions:

Discretionary Policy

A policy where government entities, like central banks or governments themselves, decide on actions or measures to take based on current economic conditions.

Self-corrective Forces

Mechanisms within the market economy that work to naturally correct imbalances and return the economy to a state of equilibrium without external intervention.

Rational Expectations

The hypothesis that individuals form forecasts about the future based on all available information in a way that is consistent with the actual structure of the economy.

Active Stabilization Policy

Economic policies aimed at minimizing business cycle fluctuations through fiscal and monetary interventions by the government.