An Argument in Favor of Allowing Discretionary Macroeconomic Policy Is

question 38

Multiple Choice

An argument in favor of allowing discretionary macroeconomic policy is that:

• A) policymakers may make erratic shifts in policy in response to changing political situations.
• B) uninformed policymakers may choose incorrect policies.
• C) the objectives of policymakers may be in conflict with the well-being of the public.
• D) giving policymakers flexibility will allow them to respond to changing conditions.

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Definitions:

Homeostasis

The ability of an organism or environment to maintain stability in response to changes.

Intrinsic Motives

Internal drives for behavior that come from personal satisfaction or the joy of doing a task, rather than external rewards.

Drive Level

The intensity of an urge or motivation that propels an individual towards a certain behavior to satisfy a need or achieve a goal.

Arousal

Refers to the physiological and psychological state of being awoken or alert, typically involving the activation of certain brain pathways and bodily responses.