Multiple Choice
Which of the following is consistent with an active approach to policy?
A) The natural rate of unemployment is uncertain.
B) Wages and prices adjust relatively quickly.
C) The short-run aggregate supply curve is slow to shift in the presence of a contractionary gap.
D) The size of the multiplier is irrelevant.
E) Self-correction lags are not a problem.
Correct Answer:
Verified
Correct Answer:
Verified
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