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Economics (MindTap Course List)

13th Edition
Roger A. Arnold
ISBN: 9781337617383

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BuyFindarrow_forward

Economics (MindTap Course List)

13th Edition
Roger A. Arnold
ISBN: 9781337617383
Textbook Problem

Suppose the combination of more accurate data and better forecasting techniques would make it easy for the Fed to predict a recession 10 to 16 months in advance. Would this state of affairs strengthen the case for activism or nonactivism? Explain your answer.

To determine

Effects of activism and non-activism in the prediction of recession.

Explanation

Prediction of recession will strengthen the case of activism than the non-activism. According to activism, there is a deliberate use of the monetary policy and the fiscal policy to smoothen the business cycle. They believe in the government intervention to maintain the economy...

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