Which of the Following Statements Has Been Proposed as a Benefit

Multiple Choice

Which of the following statements has been proposed as a benefit of passive policymaking?

A) Passive policymaking allows for making immediate changes in response to an anticipated change in economic performance.
B) Passive policymaking utilizes the rational expectations hypothesis.
C) When using passive policymaking there is no tradeoff between price stability and unemployment.
D) Passive policymaking does not wait for the time lag between recognition of a problem and policy action before engaging in economic policies to stabilize the economy.