Those Who Favor a Passive Approach to Policy Often Argue

Multiple Choice

Those who favor a passive approach to policy often argue that changes in prices and wages will shift the:

A) short-run aggregate supply curve before active policy shifts the aggregate demand curve.
B) short-run aggregate supply curve only after active policy shifts the aggregate demand curve.
C) short-run aggregate supply curve more than active policy shifts the aggregate demand curve.
D) short-run aggregate supply curve less than active policy shifts the aggregate demand curve.
E) short-run aggregate supply curve in a direction opposite the shift in the aggregate demand curve