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:

One-sample T-test

A statistical test used to determine whether a sample mean significantly differs from a known or hypothesized population mean.

Kruskal-Wallis Test

A non-parametric method used to determine if there are statistically significant differences between two or more groups of an independent variable on a continuous or ordinal dependent variable.

Kruskal-Wallis Test

A non-parametric method for testing whether samples originate from the same distribution.

One-tail

Refers to a type of statistical test where the critical area of a distribution is one-sided so that it tests for the possibility of the relationship in one direction.