Which of the following is consistent with an active approach to policy?
A) the natural rate of unemployment being uncertain
B) wages and prices being relatively quick to adjust
C) the short-run aggregate supply curve being slow to shift in the presence of a recessionary gap
D) the size of the multiplier being irrelevant
E) the aggregate demand curve being slow to shift in the presence of a recessionary gap
Correct Answer:
Verified
Q3: Self-correction works to close a recessionary gap
Q4: Exhibit 16.1 Q5: Exhibit 16-2 Q6: If an economy's actual GDP exceeds its Q7: Exhibit 16-2 Q7: For those who favor an active approach,public Q9: In the event of a recession, which Q11: If a passive approach is followed in Q11: Exhibit 16.1 Q13: An economy experiencing an expansionary gap _ Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents
A)
