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Exhibit 15-2 -Refer to the Graph in the Exhibit.According to Policymakers Who

Question 128

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Exhibit 15-2
Exhibit 15-2    -Refer to the graph in the exhibit.According to policymakers who favour a passive approach to policy, how will the economy attain equilibrium at potential output?   A)  by increasing real wages, thus causing the SRAS curve to shift left  B)  by shifting the SRAS curve to the right  C)  by increasing the money supply or by increasing government spending  D)  by decreasing the money supply or by decreasing government spending
-Refer to the graph in the exhibit.According to policymakers who favour a passive approach to policy, how will the economy attain equilibrium at potential output?  


A)  by increasing real wages, thus causing the SRAS curve to shift left 
B)  by shifting the SRAS curve to the right 
C)  by increasing the money supply or by increasing government spending 
D)  by decreasing the money supply or by decreasing government spending

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