The controversy over macroeconomic policy can be characterized as a continuum with one end of the spectrum being held by those economists who advocate _______________, and the other end of the spectrum being held by those economists who advocate ___________________.
A) that a passive role for government is best; that an active role for government is necessary.
B) an activist monetary policy; an activist fiscal policy.
C) an activist structural policy; an activist monetary policy.
D) a passive fiscal policy; an activist fiscal policy.

Question

Quizplus · Accepted Answer

The controversy in macroeconomic policy often revolves around the role of government in the economy. One end of the spectrum includes economists who believe in a passive role for government, suggesting that the market should operate with minimal government intervention. The other end consists of those who argue for an active role for government, believing that government intervention is necessary to correct market failures, stabilize the economy, and promote growth. This dichotomy captures the essence of the debate between laissez-faire approaches and Keynesian economics, respectively.

The Controversy Over Macroeconomic Policy Can Be Characterized as a Continuum