Nonactivists believe that ________.
A)there is a very rapid self-correcting mechanism since prices and wages are very flexible
B)lags to policy implementation are so long that even the "correct" policies may lead to undesirable consequences
C)policy interventions should take place less frequently than what Keynesians advocate
D)all of the above
E)none of the above

Question

Quizplus · Accepted Answer

Nonactivists hold the view that the economy has mechanisms for self-correction, that policy interventions can have delayed effects which might not be beneficial, and generally argue for less frequent government intervention compared to what Keynesians suggest. Thus, all the options A, B, and C accurately reflect nonactivist beliefs.

Nonactivists Believe That ________