Proponents of policy activism argue that the time period required for wages and prices to adjust during a severe recession would be
A) intolerably long and entail great human cost.
B) quite short and promote a quick recovery.
C) unimportant given the relative stability of the components of private spending.
D) shortened by balancing the federal budget.
E) dependent on the ratio of nominal to real GDP.

Question

Quizplus · Accepted Answer

Proponents of policy activism argue that the time period required for wages and prices to adjust during a severe recession would be intolerably long and entail great human cost. As a result, they advocate for active government intervention and policy changes to stimulate the economy and promote a quicker recovery.

Proponents of Policy Activism Argue That the Time Period Required