Multiple Choice
When deciding on an appropriate course of action to counter a recessionary gap, which of the following do policymakers consider?
A) The slope of the short-run Phillips curve
B) The costs of inflation and unemployment
C) The efficiency of the economy's self-correcting mechanism
D) All of these responses are correct.
Correct Answer:

Verified
Correct Answer:
Verified
Q66: What will tend to happen to wages
Q67: In the rational expectations model, government control
Q68: Which of the following is most likely
Q69: Most economists believe that the theory of
Q70: An economy eliminates a recessionary gap by
Q72: In the 1970s, why did the short-run
Q73: If fluctuations in economic activity come from
Q74: Natural rate of unemployment is the normal
Q75: During the 1960s and early 1970s, economists
Q76: When the Phillips curve was first formulated