Which of the Following Is Not a Potential Problem with Active

question 40

Multiple Choice

Which of the following is not a potential problem with active policy for policy makers?

• A)predicting what would happen with a passive approach
• B)lacking the tools needed to achieve the desired result quickly
• C)not predicting the effects of an active policy on the economy's key performance measures
• D)fiscal and monetary policy makers not working together
• E)failing to implement the appropriate policy because of political obstacles

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Definitions:

Unemployment

The situation when people who are willing to work at prevailing wage rates cannot find employment.

Movement

In economic terms, it often refers to a change in price or quantity in response to market forces on a graph.

Opportunity Costs

The cost of forgoing the next best alternative when making a decision or choosing among options.

Inputs

Refers to the resources used in the production of goods and services, including labor, capital, and materials.