Those Who Favor Passive Policymaking Argue That All of the Following

question 253

Multiple Choice

Those who favor passive policymaking argue that all of the following exist EXCEPT

• A) perfectly flexible wages and prices.
• B) the trade off between inflation and unemployment is not stable in the short run and is non-existent in the long run.
• C) pure competition is typical.
• D) aggregate demand shocks can influence real GDP and unemployment.