The _____ Hypothesis Is That Macroeconomic Policy Should Be Used

question 83

Multiple Choice

The _____ hypothesis is that macroeconomic policy should be used to stabilize the economy rather than to permanently decrease the unemployment rate.

• A) natural rate
• B) political business cycle
• C) rational expectations
• D) real business cycle

---

Definitions:

Monitor

To monitor is to regularly observe and check the progress or quality of something over a period of time, often to detect changes or to ensure that it is in a satisfactory condition.

Leader

An individual who guides or directs a group towards achieving specific goals or objectives, often exhibiting qualities such as vision, initiative, and inspiration.

Formal Organization

An organization structured with established laws, regulations, policies, and procedures to achieve specific objectives, characterized by a defined hierarchy and roles.

Success-Disengagement

The process where successful entrepreneurs gradually reduce their involvement in the business, either through retirement or by delegating responsibilities.