An Economist Who Would Most Likely Use Active Policymaking Would

question 220

Multiple Choice

An economist who would most likely use active policymaking would support which of the following conclusions?

• A) Pure competition is not typical in most markets.
• B) Price flexibility is common in most markets.
• C) Demand shocks have little or no short-run effects on real Gross Domestic Product (GDP) and unemployment.
• D) Supply shocks explain most business cycles.

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Definitions:

Language Ability

Refers to the capacity to understand, produce, and use words and sentences to communicate effectively.

Language Acquisition Device

A hypothetical module proposed by Noam Chomsky, suggesting that the ability to learn language is innate to humans and pre-wired into the brain.

Built-In Mechanism

An innate or inherent structure or function within an organism that enables it to perform a specific task or respond to certain stimuli automatically.

Williams Syndrome

A rare genetic disorder characterized by medical problems, including cardiovascular disease, developmental delays, and unique personality traits, such as extreme friendliness.