Business
Business, 03.12.2021 20:20, alysa03

If the​ economy's self-correcting mechanism works​ slowly, should the government necessarily pursue discretionary policy to eliminate​ unemployment? A. Not necessarily. It is still possible that activist policy to eliminate unemployment will cause​ demand-pull and​ cost-push inflation. B. Not necessarily. With a slow​ self-correcting mechanism, increased price and output volatility will certainly result from discretionary policy. C. Yes. If the​ self-correcting mechanism works​ slowly, it is certainly desirable for policymakers to intervene. D. No. If the​ self-correcting mechanism works​ slowly, discretionary policy will work slowly as well.

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