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

Multiple Choice

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

A) active policy should be strengthened.
B) active policy is likely to destabilize the economy.
C) time is required to accumulate evidence that the economy is performing below its potential.
D) the aggregate demand curve shifts more rapidly than the short-run aggregate supply curve.
E) active policy will work better than passive policy.