Those Who Favor a Passive Approach to Policy Often Argue

Multiple Choice

Those who favor a passive approach to policy often argue that changes in prices and wages will shift the short-run aggregate supply curve

A) before active policy shifts the aggregate demand curve
B) only after active policy shifts the aggregate demand curve
C) more than active policy shifts the aggregate demand curve
D) less than active policy shifts the aggregate demand curve
E) in a direction opposite to the shift in the aggregate demand curve caused by active policy