In the Long Run, How Would an Active Approach to a Recessionary

Multiple Choice

In the long run, how would an active approach to a recessionary gap differ from a passive approach to policy?  

A)  In an activist approach, both the price level and the level of real GDP would be higher in the long run. 
B)  In an activist approach, both the price level and the level of real GDP would be lower in the long run. 
C)  In an activist approach, only the price level would be lower in the long run. 
D)  In an activist approach, only the price level would be higher in the long run.