To Favor a Passive Approach to Policy Is to Believe

Multiple Choice

To favor a passive approach to policy is to believe that the private sector is

A) relatively stable and both wages and prices adjust quickly to eliminate excess supply or excess demand for labor
B) basically unstable,although both wages and prices adjust quickly to eliminate excess supply or excess demand for labor
C) relatively stable,although both wages and prices tend to be very sticky downward
D) basically unstable and both wages and prices tend to be very sticky downward
E) so stable that wages and prices rarely change