Multiple Choice
Those who favor a passive approach to policy think that all of the following conditions will allow the economy to bring itself out of a contractionary gap except one. Which is the exception?
A) lower real wages
B) a shortage of labor
C) lower production costs
D) a lower expected price level
E) a rightward shift in the short-run aggregate supply curve
Correct Answer:
Verified
Correct Answer:
Verified
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