Which of the following statements has been proposed as a benefit of passive policy making? Passive policy making utilizes the rational expectations hypothesis. Passive policy making allows for making immediate changes in response to an anticipated change in economic performance. When using passive policy making there is no tradeoff between price stability and unemployment. Passive policy making does not wait for the time lag between recognition of a problem and policy action before engaging in economic policies to stabilize the economy.

Which of the following statements has been proposed as a benefit of passive policy making? Passive policy making utilizes the rational expectations hypothesis. Passive policy making allows for making immediate changes in response to an anticipated change in economic performance. When using passive policy making there is no tradeoff between price stability and unemployment. Passive policy making does not wait for the time lag between recognition of a problem and policy action before engaging in economic policies to stabilize the economy.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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