The Concerns of Economists Who Favor Passive Over Active Policy

question 16

Multiple Choice

The concerns of economists who favor passive over active policy are most closely associated with their:

• A) preference for using monetary policy rather than fiscal policy for stabilization.
• B) view that policy made by rules is superior to policy made by discretion.
• C) belief that shocks to modern economies are not large enough to require any policy response.
• D) doubt that the correct policy will be implemented at the correct time.

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Definitions:

High in Agreeableness

Referring to a personality trait where individuals are cooperative, warm, and friendly, often associated with positive social behaviors.

Extroversion

A personality trait characterized by outgoingness, high energy, and comfort in socializing and interacting with others.

Conscientiousness

is a personality trait characterized by diligence, carefulness, organization, self-discipline, and the ability to regulate oneself.

Conscientiousness

A characteristic that denotes being hardworking, meticulous, and having the motivation to perform a job effectively.