Which One of the Following Is an Example of Passive

question 162

Multiple Choice

Which one of the following is an example of passive policymaking?

• A) introducing expansionary monetary policy to combat a recession
• B) introducing expansionary monetary policy to combat inflation
• C) introducing expansionary fiscal policy to combat a recession
• D) following a predetermined monetary policy rule

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Definitions:

Production Possibilities Curve

A graphical representation showing the maximum number of goods or services that can be produced with a fixed amount of resources.

Scarcity

The fundamental economic problem of having seemingly unlimited human wants in a world of limited resources, leading to the necessity of making choices.

Production Possibilities Curve

A graph that depicts the maximum possible output combinations of two goods that can be produced with available resources and technology, illustrating opportunity costs.

Production Possibilities Curve

A graphical representation that shows the maximum quantity of one good that can be produced for each possible quantity of another good produced, assuming all resources are fully and efficiently utilized.