In the long run, how would an active approach to a contractionary gap differ from a passive approach to policy?
A)Both the price level and the level of real GDP would be higher in the long run with the activist solution.
B)Both the price level and the level of real GDP would be lower in the long run with the activist solution.
C)The price level would be higher and the level of real GDP would be lower in the long run with the activist solution.
D)Only the price level would be lower in the long run with the activist solution.
E)Only the price level would be higher in the long run with the activist solution.

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The Answer of In the long run, how would an active approach to a contractionary gap differ from a passive approach to policy?
A)Both the price level and the level of real GDP would be higher in the long run with the activist solution.
B)Both the price level and the level of real GDP would be lower in the long run with the activist solution.
C)The price level would be higher and the level of real GDP would be lower in the long run with the activist solution.
D)Only the price level would be lower in the long run with the activist solution.
E)Only the price level would be higher in the long run with the activist solution.

In the Long Run, How Would an Active Approach to a Contractionary