Exhibit 17-1
-According to those who favor an active approach to policy, where will the economy in Exhibit 17-1 end up when it achieves its potential output?
A)point A
B)point B
C)point C
D)either point B or C
E)cannot tell from the information provided

Question

Exhibit 17-1 
-According to those who favor an active approach to policy, where will the economy in Exhibit 17-1 end up when it achieves its potential output?
A)point A 
B)point B 
C)point C 
D)either point B or C 
E)cannot tell from the information provided

Quizplus · Accepted Answer

An active approach to policy aims to steer the economy towards its potential output, which is typically represented by a point where full employment and optimal resource utilization occur, often depicted as point C in economic models.

Exhibit 17-1 -According to Those Who Favor an Active Approach to Policy