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If the Time for an Economy to Self-Correct Is Shorter

Question 33

Multiple Choice

If the time for an economy to self-correct is shorter than the active policy lags,


A) active policy should be strengthened
B) active policy will likely be destabilizing
C) the passive policy case is weakened
D) the aggregate demand curve shifts more rapidly than the short-run aggregate supply curve
E) active policy will work better than passive policy

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