Consider an Economic Policy Regime in Which Rules Are Well-Known

Multiple Choice

Consider an economic policy regime in which rules are well-known but frequently ignored.Which of these statements is true?

A) This regime might work in the long-run,but is unlikely to produce good outcomes in the short run.
B) Policymakers in this regime might find that rules are being broken with increasing frequency.
C) This regime is more likely to be supported by nonactivist,than by activist policymakers.
D) This regime is more likely to result in high unemployment than in high inflation.
E) This regime is unlikely to produce large government budget deficits.