Multiple Choice
Which of the following is consistent with an active approach to policy?
A) the natural rate of unemployment being uncertain
B) wages and prices being relatively quick to adjust
C) the short-run aggregate supply curve being slow to shift in the presence of a recessionary gap
D) the size of the multiplier being irrelevant
E) the aggregate demand curve being slow to shift in the presence of a recessionary gap
Correct Answer:

Verified
Correct Answer:
Verified
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