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RSB [31]
3 years ago
10

Explain why each of the following statements is a rationale for conducting active or passive policy: Economic circumstances can

change dramatically between the time that an economic downturn begins and the time when policy actions have an effect on the economy. Economists are not very accurate forecasters. Increases in government spending generate increases in economic output. Fluctuations in economic output have been less severe since World War II.
Business
1 answer:
Vladimir79 [104]3 years ago
6 0

Answer:

The rationale for conducting active policy is the interest of Congress to alter the state of the economy through a deliberate change in established policies.

But in the case of Passive policy, the government permits the status quo.

Active policy relies on the government to enforce it while passive policy does not need the government's interference to work in stabilizing the economy.

Explanation:

The following statements applies passive policy because the economy is expected to stabilize on it's own without the deliberate act of congress influencing it:

  • Economic circumstances can change dramatically between the time that an economic downturn begins and the time when policy actions have an effect on the economy.
  • Fluctuations in economic output have been less severe since World War II.

The following statements is a rationale for conducting active policy since the government's intervention is required:

  • Economists are not very accurate forecasters.
  • Increases in government spending generate increases in economic output.
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The law of opportunity cost occur when some of the resources are best suited for some tasks or products instead of others and it will lead to increase in production with increase in the opportunity cost too.

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The financial manager must decide how much money is needed and when, how best to use the available funds, and how to get the required financing

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2 years ago
Lesley Torres is a project manager for the campaign​ "Action against Deforestation in​ Indonesia." She recently faced a glitch w
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Explanation:

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The controlling is one of the main function in the management as it ensure all the activities performed accurately and also helps in planning all the activities in an organization. It basically helps in meet the desirable goals of the company by setting a standard performance.

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Ilia_Sergeevich [38]

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Explanation:

I am guessing

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