In general,we would expect those who favor a passive approach to policy to believe in
A)slow rather than rapid self-correction
B)potentially incorrect rather than rational price expectations
C)short,certain rather than long,variable policy lags
D)a negatively sloped rather than vertical Phillips curve
E)the natural rate hypothesis

Question

Quizplus · Accepted Answer

Those who favor a passive approach to policy typically believe in the natural rate hypothesis, which suggests that the economy will self-correct to its natural rate of unemployment without active intervention.

In General,we Would Expect Those Who Favor a Passive Approach