According to the active policy approach,the elimination of a recessionary policy _____.
A)can only be achieved by decreasing wages
B)requires a public policy of wage and price controls
C)should be accomplished by stimulating aggregate demand
D)will increase unemployment
E)will cause a recession

Question

Quizplus · Accepted Answer

According to the active policy approach, the best way to eliminate a recessionary policy is to stimulate aggregate demand. This can be accomplished through measures such as increasing government spending, lowering taxes, or lowering interest rates. By doing so, businesses are encouraged to produce more goods and services, leading to increased employment and economic growth. This is in contrast to other options such as decreasing wages, which can lead to lower consumer spending and further economic contraction.

According to the Active Policy Approach,the Elimination of a Recessionary