Activists and Nonactivists Both Believe That

Multiple Choice

Activists and nonactivists both believe that

A) the self-corrective mechanism of a market economy works quite well.
B) macro-policy should seek to minimize economic fluctuations, keep the inflation rate low, and establish an environment consistent with strong economic growth.
C) discretionary monetary and fiscal policy can be used successfully to speed the adjustment process and reduce the swings of the business cycle.
D) policies that stimulate aggregate demand can reduce the long-term rate of unemployment.