Which of the following statements has been proposed as a benefit of passive policymaking?
A) Passive policymaking allows for making immediate changes in response to an anticipated change in economic performance.
B) Passive policymaking utilizes the rational expectations hypothesis.
C) When using passive policymaking there is no tradeoff between price stability and unemployment.
D) Passive policymaking does not wait for the time lag between recognition of a problem and policy action before engaging in economic policies to stabilize the economy.
Correct Answer:
Verified
Q10: Which one of the following is an
Q11: The Federal Reserve is anticipating a contractionary
Q12: Active policymaking refers to
A) actions taken by
Q13: Policymaking that is carried out in response
Q14: Suppose a constitutional amendment is passed that
Q16: When policymakers base their actions on a
Q17: Actions on the part of monetary and
Q18: What best defines active policymaking?
A) taking action
Q19: An example of nondiscretionary policymaking is
A) a
Q20: Proponents of passive policymaking believe that
A) the
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