Which of the Following Statements Has Been Proposed as a Benefit

question 229

Multiple Choice

Which of the following statements has been proposed as a benefit of passive policymaking?

• A) Passive policymaking allows for making immediate changes in response to an anticipated change in economic performance.
• B) Passive policymaking utilizes the rational expectations hypothesis.
• C) When using passive policymaking there is no tradeoff between price stability and unemployment.
• D) Passive policymaking does not wait for the time lag between recognition of a problem and policy action before engaging in economic policies to stabilize the economy.

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Definitions:

Social Psychologists

Professionals who analyze the impact of real, perceived, or suggested presence of other people on a person's mental processes, emotions, and actions.

Win-win Propositions

Solutions or agreements designed to bring positive outcomes for all parties involved, often sought in negotiations to ensure mutual satisfaction.

Zero-sum Games

A concept in game theory where one participant's gain is exactly balanced by the losses of other participants.

Non-zero-sum Games

Situations in game theory where the gain or loss of one participant does not necessarily correlate with the loss or gain of another participant.