According to the passive approach,discretionary fiscal or monetary policy can reduce the costs of an unstable economy.

Question

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The passive approach argues that discretionary fiscal or monetary policy can actually increase the costs of an unstable economy by creating uncertainty and interfering with market forces. The passive approach advocates for a hands-off approach to economic stabilization and emphasizes the importance of structural reforms and long-term policies that promote stability and growth.

According to the Passive Approach,discretionary Fiscal or Monetary Policy Can