Multiple Choice
For policymakers who favour an active approach, why are public policy changes considered necessary for curing a recessionary gap?
A) because the short-run aggregate supply curve will otherwise shift quickly to the right
B) because prices and wages are flexible downward but NOT upward
C) because the required decrease in output can be achieved only by shifting the AD curve
D) because real wages must fall during price increases rather than wait for money wages to fall
Correct Answer:

Verified
Correct Answer:
Verified
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Q5: Suppose a recession surprises economic forecasters.Which term
Q6: What relationship does the Phillips curve illustrate?
Q7: Which of the following is a statement
Q8: What term refers to the period of
Q10: Suppose that policymakers are concerned about a
Q11: Suppose the economy is in a recession.Which
Q12: In general, the Bank of Canada has
Q13: What does the initial Phillips curve relationship
Q14: In the long run, how would an