Exhibit 16-1
-According to those who favor an active approach to policy,where will the economy in Exhibit 16-1 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 16-1 
-According to those who favor an active approach to policy,where will the economy in Exhibit 16-1 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 policy approach aims to adjust economic policies to reach potential output, which is typically represented by point C in economic models.

Exhibit 16-1 -According to Those Who Favor an Active Approach to Policy,where