An Economist Who Would Most Likely Use Active Policymaking Would

Multiple Choice

An economist who would most likely use active policymaking would support which of the following conclusions?

A) Pure competition is not typical in most markets.
B) Price flexibility is common in most markets.
C) Demand shocks have little or no short-run effects on real Gross Domestic Product (GDP) and unemployment.
D) Supply shocks explain most business cycles.