If the Time Taken for an Economy to Self-Correct Is

Multiple Choice

If the time taken for an economy to self-correct is shorter than the active policy lags, then _____

A) active policy will shift the short-run aggregate supply curve more than the aggregate demand curve.
B) active policy is likely to destabilize the economy.
C) time is required to accumulate evidence that the economy is performing below its potential.
D) the aggregate demand curve will shift more rapidly than the short-run aggregate supply curve.
E) active policy will work better than passive policy.