Why does a passive approach to economic policy call for the government to do nothing to offset unemployment?
A) because there is a lack of any real concern for people who have no jobs
B) because there is a conviction that unemployment is relatively harmless
C) because there is a belief that active economic policy is likely to be either ineffective or harmful
D) because there is a desire to await further economic data before intervening

Question

Why does a passive approach to economic policy call for the government to do nothing to offset unemployment?  
A) because there is a lack of any real concern for people who have no jobs 
B) because there is a conviction that unemployment is relatively harmless 
C) because there is a belief that active economic policy is likely to be either ineffective or harmful 
D) because there is a desire to await further economic data before intervening

Quizplus · Accepted Answer

A passive approach to economic policy is based on the belief that active economic policy is likely to be either ineffective or harmful. Therefore, it calls for the government to do nothing to offset unemployment. This approach assumes that allowing the free market to run its course will lead to efficient outcomes in the long run, even if there are short-term fluctuations in unemployment.

Why Does a Passive Approach to Economic Policy Call for the Government