Exhibit 16-2
-In Exhibit 16-2,the aggregate demand in the economy is represented by AD₁ and the short run aggregate supply by SRAS₁₁₀.If an active policy approach is used,the economy will move from its current short-run equilibrium to point _____.

Question

Exhibit 16-2 Exhibit 16-2 -In Exhibit 16-2,the aggregate demand in the economy is represented by AD<sub>1</sub> and the short run aggregate supply by SRAS<sub>110</sub>.If an active policy approach is used,the economy will move from its current short-run equilibrium to point _____. A) A B) B C) C D) E E) F

Exhibit 16-2 -In Exhibit 16-2,the aggregate demand in the economy is represented by AD<sub>1</sub> and the short run aggregate supply by SRAS<sub>110</sub>.If an active policy approach is used,the economy will move from its current short-run equilibrium to point _____. A) A B) B C) C D) E E) F

-In Exhibit 16-2,the aggregate demand in the economy is represented by AD₁ and the short run aggregate supply by SRAS₁₁₀.If an active policy approach is used,the economy will move from its current short-run equilibrium to point _____.

Quizplus · Accepted Answer

An active policy approach typically involves government intervention to shift the aggregate demand curve. This would move the economy from its current short-run equilibrium to a new point where the new aggregate demand curve intersects with the short-run aggregate supply curve. Point C is likely the new equilibrium after such a policy intervention.

Exhibit 16-2 -In Exhibit 16-2,the Aggregate Demand in the Economy Is Represented