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    Macroeconomics
  4. Exam
    Exam 17: Macro Policy Debate: Active or Passive
  5. Question
    According to the Active Policy Position, Eliminating a Contractionary Gap
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According to the Active Policy Position, Eliminating a Contractionary Gap

Question 2

Question 2

Multiple Choice

According to the active policy position, eliminating a contractionary gap


A) can only be achieved by decreasing wages
B) requires a public policy of wage and price controls
C) should be accomplished by stimulating aggregate demand
D) will increase unemployment
E) will cause a recession

Correct Answer:

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