Consider an Economic Policy Regime in Which Rules Are Well-Known

question 78

Multiple Choice

Consider an economic policy regime in which rules are well-known but frequently ignored.Which of these statements is true?

• A)This regime might work in the long-run,but is unlikely to produce good outcomes in the short run.
• B)Policymakers in this regime might find that rules are being broken with increasing frequency.
• C)This regime is more likely to be supported by nonactivist,than by activist policymakers.
• D)This regime is more likely to result in high unemployment than in high inflation.
• E)This regime is unlikely to produce large government budget deficits.

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