According to Economists Who Support Passive Policymaking

question 15

Multiple Choice

According to economists who support passive policymaking

• A) there is no difference between the effect of an anticipated change in aggregate demand and the effect of an unanticipated change in aggregate demand of an identical amount.
• B) workers always consider a change in nominal wages to be a change in real wages.
• C) expansionary policies can reduce unemployment without increasing the price level.
• D) policies that attempt to exploit the Phillips curve trade-off will eventually become ineffective for reducing unemployment.

---

Definitions:

Physiological Stability

The state of having stable body functions and homeostatic conditions, including consistent heart rate, blood pressure, and body temperature.

Disorientation

A state of confusion regarding time, place, or personal identity.

Confusion

A mental state characterized by disorientation and difficulty in understanding or making sense of the environment and information.

Self-Esteem

The subjective evaluation or appraisal of one's own worth, value, or significance.