The figure below shows the relationship between an economy's potential output,price level,and real GDP.According to those who favor a passive approach to policy,the economy will attain equilibrium at potential output when:
A) the short-run aggregate supply curve shifts to the left.
B) the short-run aggregate supply curve shifts to the right due to a fall in real wages.
C) either the money supply or government spending is increased.
D) either the money supply or government spending is decreased.
E) aggregate demand is decreased.
Correct Answer:
Verified
Q2: When self-correction works to eliminate an expansionary
Q3: An economy experiencing an expansionary gap:
A)operates in
Q4: The reason why self-correction works to close
Q5: In the event of a recession,which of
Q6: If we observe an economy adjusting to
Q7: For those who favor an active approach,public
Q8: According to the active policy approach,the elimination
Q9: The figure below shows the price level,real
Q10: Which of the following is a difference
Q11: If a passive approach is followed in
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