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Table 3.1
Time (weeks)
-Using Table 3.1,which activity will have the largest amount of slack?
Discretionary Policy
A policy where government entities, like central banks or governments themselves, decide on actions or measures to take based on current economic conditions.
Self-corrective Forces
Mechanisms within the market economy that work to naturally correct imbalances and return the economy to a state of equilibrium without external intervention.
Rational Expectations
The hypothesis that individuals form forecasts about the future based on all available information in a way that is consistent with the actual structure of the economy.
Active Stabilization Policy
Economic policies aimed at minimizing business cycle fluctuations through fiscal and monetary interventions by the government.
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