If the natural unemployment rate cannot easily be estimated,__________ policy making becomes more difficult.
A)active
B)passive
C)monetarist
D)classical
E)rational expectations

Question

Quizplus · Accepted Answer

If the natural unemployment rate cannot be accurately estimated, it becomes harder for policymakers to determine the appropriate level of intervention through monetary or fiscal policy. In this scenario, policymakers may need to employ more active measures to affect the economy, such as through tax cuts, increased government spending, or changes in interest rates.

If the Natural Unemployment Rate Cannot Easily Be Estimated,__________ Policy