Asked by Poppin galaxy on Jul 04, 2024
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According to the passive approach,discretionary fiscal or monetary policy can reduce the costs of an unstable economy.
Passive Approach
A passive approach involves a non-interventionist or minimal-effort strategy of dealing with situations, often contrasted with active strategies that require direct action.
Discretionary Fiscal Policy
Discretionary Fiscal Policy involves government action to stimulate or restrain the economy via changes in taxation and spending, based on current economic conditions.
- Differentiate the effects of active versus passive economic policies on the fluctuations of business cycles.
Verified Answer
Learning Objectives
- Differentiate the effects of active versus passive economic policies on the fluctuations of business cycles.
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