Which of the Following Is Not One of the Set

question 101

Multiple Choice

Which of the following is not one of the set of assumptions necessary to create the Activists' Paradise?

• A) political constraints on the use of policy instruments
• B) perfect forecasting of future movements in aggregate demand
• C) the absence of costs in changing the policy instruments
• D) policy instruments that strongly affect aggregate demand

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Definitions:

Free Trade

An economic policy that allows imports and exports among member countries with little to no tariff barriers.

Eurozone

A monetary and economic union of 19 European Union countries that have adopted the euro as their common currency.

European Union

A political and economic union of 27 European countries that are located primarily in Europe, aiming to foster economic cooperation and create a barrier-free single market.

Common Currency

A common currency is a currency that is used by multiple countries, facilitating trade and economic policy coordination.