A Passive Approach to Economic Policy Calls for the Government

Multiple Choice

A passive approach to economic policy calls for the government to do nothing to offset unemployment because of

A) a lack of any real concern for those who have no jobs
B) a conviction that unemployment is relatively harmless
C) a belief that active economic policy is likely to be either ineffective or harmful
D) a desire to await further economic data before intervening
E) belief in the law of diminishing returns