There is greater support for passive policymaking when

Question

Quizplus · Accepted Answer

Passive policymaking is the approach of allowing the economy to self-correct without government intervention. It is more effective when there is pure competition, price flexibility, and wage flexibility within the economy. Pure competition allows market forces to operate efficiently and adjust prices without government intervention. Price flexibility refers to the ability of prices to adjust to changes in supply and demand without difficulty. Wage flexibility means wages can adjust to market forces without causing unemployment or inflation. Thus, all of the above factors support passive policymaking.

There Is Greater Support for Passive Policymaking When