Which of the following is a rationale for the passive approach?
A) The appropriate policy is selected instantaneously.
B) The appropriate policy is implemented instantaneously.
C) Once implemented, the policy works as advertised.
D) The policy, once implemented, works immediately.
E) The economy is complex, and economic aggregates can interact in obscure ways.

Question

Quizplus · Accepted Answer

The passive approach is based on the premise that the economy is complex, and economic aggregates can interact in obscure ways. This means that it is difficult to predict the outcomes of policies accurately, and therefore policymakers should refrain from making arbitrary changes to the economic system. Instead, they should adopt a hands-off approach, allowing market forces to operate on their own without interference. This rationale is based on the belief that the economy is self-regulating, and that government intervention can often do more harm than good.

Which of the Following Is a Rationale for the Passive