Policymakers Who Favour a Passive Approach to Policy Often Argue

Multiple Choice

Policymakers who favour a passive approach to policy often argue that the passive approach is more effective than an active approach because changes in prices and wages will shift the short-run aggregate supply curve (SRAS) .Why is the passive approach able to shift the SRAS?  

A)  because a passive policy will act faster than an active policy aimed at shifting the aggregate demand curve 
B)  because a passive policy will be effective only after an active policy shifts the aggregate demand curve 
C)  because a passive policy will shift the SRAS curve more than an active policy aimed at shifting the aggregate demand curve 
D)  because a passive policy will shift the SRAS curve less than an active policy aimed at shifting the aggregate demand curve