Multiple Choice
If aggregate output is below the natural rate level,nonactivists of policies would recommend that the government
A) do nothing.
B) try to eliminate the high unemployment by attempting to shift the aggregate supply curve to the right.
C) try to eliminate the high unemployment by attempting to shift the aggregate demand curve to the right.
D) try to eliminate the high unemployment by attempting to shift the aggregate demand curve to the left.
Correct Answer:

Verified
Correct Answer:
Verified
Q30: When the economy is hit by a
Q31: Evidence from the time period 1960-1980 indicates
Q32: The Fed's quantitative easing is to purchase
Q33: When the economy suffers a temporary negative
Q34: Theoretically,one can distinguish a demand-pull inflation from
Q36: With the policy rate set at zero,the
Q37: When output is below potential and the
Q38: If workers do not believe that policymakers
Q39: The time it takes for policy makers
Q40: When the economy suffers a permanent negative