A passive approach to economic policy calls for the government to do nothing to offset unemployment because of
A)a lack of any real concern for those who have no jobs
B)a conviction that unemployment is relatively harmless
C)a belief that active economic policy is likely to be either ineffective or harmful
D)a desire to await further economic data before intervening
E)belief in the law of diminishing returns

Question

Quizplus · Accepted Answer

A passive approach to economic policy believes that government intervention is likely to be either ineffective or even harmful. The policymakers who believe in this approach are skeptical of the economy's ability to perform well without market forces. Therefore, they do not take any action to offset the unemployment rate.

A Passive Approach to Economic Policy Calls for the Government