Those Who Favor Passive Policymaking Argue That All of the Following

question 253

Multiple Choice

Those who favor passive policymaking argue that all of the following exist EXCEPT

• A) perfectly flexible wages and prices.
• B) the trade off between inflation and unemployment is not stable in the short run and is non-existent in the long run.
• C) pure competition is typical.
• D) aggregate demand shocks can influence real GDP and unemployment.

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Definitions:

Obsessive-Compulsive Disorder

A mental disorder characterized by unwanted, persistent thoughts (obsessions) and repetitive behaviors (compulsions) that an individual feels driven to perform.

Exposure and Response Prevention

A behavioral therapy technique often used for treating obsessive-compulsive disorder, involving exposure to the source of fear and refraining from the compulsive behavior that typically follows.

Compulsions

Compulsions are repetitive behaviors or mental acts driven by anxiety or stress, often seen in disorders like OCD.

Feared Stimulus

A specific object, situation, or activity that evokes an intense fear response in an individual.