Activists and nonactivists both believe that
A) the self-corrective mechanism of a market economy works quite well.
B) macro-policy should seek to minimize economic fluctuations, keep the inflation rate low, and establish an environment consistent with strong economic growth.
C) discretionary monetary and fiscal policy can be used successfully to speed the adjustment process and reduce the swings of the business cycle.
D) policies that stimulate aggregate demand can reduce the long-term rate of unemployment.

Question

Quizplus · Accepted Answer

Both activists and nonactivists believe in macro-policy that seeks to minimize economic fluctuations, keep the inflation rate low, and establish an environment consistent with strong economic growth. The other options are either not universally agreed upon or are more likely to be supported by one group over the other.

Activists and Nonactivists Both Believe That