Which of the following is NOT required in order for a policy of governmental intervention in the economy to be effective?
A) the will to reject sound policy if the policy gets in the way of political considerations
B) the ability to estimate the economy's potential level of output
C) the ability to predict what would happen without intervention
D) an assortment of effective tools of discretionary policy

Question

Which of the following is NOT required in order for a policy of governmental intervention in the economy to be effective?  
A) the will to reject sound policy if the policy gets in the way of political considerations 
B) the ability to estimate the economy's potential level of output 
C) the ability to predict what would happen without intervention 
D) an assortment of effective tools of discretionary policy

Quizplus · Accepted Answer

The will to reject sound policy if it gets in the way of political considerations would hinder the effectiveness of governmental intervention in the economy. The ability to estimate the economy's potential level of output, to predict what would happen without intervention, and to have an assortment of effective tools of discretionary policy are all necessary for successful intervention.

Which of the Following Is NOT Required in Order for a Policy