Multiple Choice
If the advice of those who favor a passive approach to policy is correct, how would a contractionary gap eventually close?
A) The aggregate demand curve would shift rightward.
B) The aggregate demand curve would shift leftward.
C) The short-run aggregate supply curve would shift rightward.
D) The short-run aggregate supply curve would shift leftward.
E) There would be a movement upward along the aggregate demand curve.
Correct Answer:
Verified
Correct Answer:
Verified
Q1: The long-run Phillips curve<br>A)represents the fact that
Q22: The main policy conclusion of the rational
Q45: Around the world,the tendency is toward<br>A)ever-higher interest
Q54: If the natural unemployment rate cannot easily
Q111: The time it takes to identify and
Q123: According to the rational expectations school,people base
Q123: In general,the Fed has not embraced a
Q125: Exhibit 17-1 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB4913/.jpg" alt="Exhibit 17-1
Q126: Exhibit 17-2 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB4913/.jpg" alt="Exhibit 17-2
Q127: Exhibit 17-1 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB4913/.jpg" alt="Exhibit 17-1