Consider the issues below that must be assessed in determining the desirability of active versus passive policymaking.

Identify which of these are associated with economists who contend that active policymaking is justified and which are associated with economists who contend that passive policymaking is justified.

Pure competition

Is not typical in most$$ markets, where imperfect competition predominates.

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active

passive

Part $2$

Price flexibility

Is common because firms adjust prices immediately when demand changes.

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active

passive

Part $3$

Wage flexibility

Is uncommon because labor market adjustments occur relatively slowly.

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active

passive