Suppose the natural unemployment rate CANNOT easily be estimated.What type of policymaking becomes more difficult under these circumstances?
A) active policymaking
B) passive policymaking
C) monetarist policymaking
D) classical policymaking

Question

Suppose the natural unemployment rate CANNOT easily be estimated.What type of policymaking becomes more difficult under these circumstances?  
A) active policymaking 
B) passive policymaking 
C) monetarist policymaking 
D) classical policymaking

Quizplus · Accepted Answer

If the natural unemployment rate cannot easily be estimated, active policymaking becomes more difficult. Active policymaking requires a clear understanding of the underlying economic conditions, and if policymakers cannot accurately estimate the natural rate of unemployment, they may struggle to develop effective policy solutions. Passive policymaking, on the other hand, does not require as much knowledge about the natural rate of unemployment, as it involves simply allowing market forces to take their course without government intervention. Monetarist and classical policymaking are not necessarily affected by the difficulty in estimating the natural unemployment rate, as they focus more on monetary policy and long-term economic factors, respectively.

Suppose the Natural Unemployment Rate CANNOT Easily Be Estimated