Arguments in Favour of Active Economic Policy Include All of the Following

question 57

Multiple Choice

Arguments in favour of active economic policy include all of the following except:

• A) failing to use monetary and fiscal policy leads to inefficient fluctuations in output and employment.
• B) the Great Depression could have been avoided if the Federal Reserve in the U.S.had pursued a policy of steady money growth.
• C) fluctuations in real GDP were less severe following World War II than those prior to World War I.
• D) failure of policymakers to respond to large contractionary shocks to private spending caused the Great Depression.

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Definitions:

Social Class

A division of a society based on social and economic status, often influencing an individual's opportunities and quality of life.

Lifestyles

The way a person or group lives, including their behaviors, attitudes, and values, which are often influenced by cultural, social, and economic factors.

Achieved Status

A social position that a person earns or chooses based on their actions, efforts, and skills, contrasted with ascribed status which is born into.

Material Wealth

The abundance of physical, tangible assets and resources owned by an individual or collective, often used as a measure of economic success or standard of living.