Which of the following statements has been proposed as a benefit of pa

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

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

ANSWER

D