Stabilization Policy Is to Be Applied If All of the Following

question 29

Multiple Choice

Stabilization policy is to be applied if all of the following applies except

• A) authorities have good information about the state of the economy.
• B) policies can be applied quickly.
• C) markets are out of equilibrium.
• D) there is no output gap.

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Definitions:

Constructivism

A theory of learning that emphasizes the role of individuals in constructing their own understanding and knowledge of the world, through experiencing things and reflecting on those experiences.

Critical Realist

An advocate or adherent of critical realism, a philosophical approach that believes the nature of reality is independent of human thoughts and beliefs but that our understanding of it is socially constructed.

Accuracy of Personality Judgments

The degree to which assessments or perceptions of others' personalities are consistent with their actual behavior and self-reports.

Realistic Accuracy Model

A psychological framework positing that accurate judgment of others' personalities is based on relevance, availability, detection, and utilization of behavioral information.