The concerns of economists who favour passive over active policy are most closely associated with their:
A) preference for using monetary policy rather than fiscal policy for stabilization.
B) view that policy made by rules is superior to policy made by discretion.
C) belief that shocks to modern economies are not large enough to require any policy response.
D) doubt that the correct policy will be implemented at the correct time.

Question

Quizplus · Accepted Answer

Passive policy is based on the belief that the economy will self-correct over time and that government intervention is not necessary or desirable. This view is often associated with the belief that the government is not capable of implementing the correct policy at the correct time.

The Concerns of Economists Who Favour Passive Over Active Policy