An economist who would most likely use active policymaking would support which of the following conclusions?
A) Pure competition is not typical in most markets.
B) Price flexibility is common in most markets.
C) Demand shocks have little or no short-run effects on real Gross Domestic Product (GDP) and unemployment.
D) Supply shocks explain most business cycles.
Correct Answer:
Verified
Q305: Those who favor passive policymaking do so
Q306: People might experience rational inattention if they
A)
Q307: If a group of economists believes the
Q308: Those who favor active policymaking argue that
Q309: A macroeconomic policy action will have a
Q311: As a result of people's habit formation,
Q312: According to the rational inattention theory, during
Q313: Wage and price stickiness causes
A) changes in
Q314: When it comes to active policymaking most
Q315: The conclusion that the economy has price
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