If aggregate output is below the natural rate level,nonactivists of policies would recommend that the government
A)do nothing.
B)try to eliminate the high unemployment by attempting to shift the aggregate supply curve to the right.
C)try to eliminate the high unemployment by attempting to shift the aggregate demand curve to the right.
D)try to eliminate the high unemployment by attempting to shift the aggregate demand curve to the left.

Question

Quizplus · Accepted Answer

Nonactivists believe in the self-correcting nature of the economy and would recommend that the government not intervene, allowing market forces to adjust and return to the natural rate level on their own.

If Aggregate Output Is Below the Natural Rate Level,nonactivists of Policies