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Exhibit 16-1 -According to Those Who Favor a Passive Approach to Policy,how

Question 158

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Exhibit 16-1 Exhibit 16-1 -According to those who favor a passive approach to policy,how will the economy shown in Exhibit 16-1 attain equilibrium at potential output? A) The SRAS curve will shift to the left. B) Real wages will fall shifting the SRAS curve to the right. C) Either the money supply or government spending should be increased. D) Either the money supply or government spending should be decreased. E) Aggregate demand should be decreased.
-According to those who favor a passive approach to policy,how will the economy shown in Exhibit 16-1 attain equilibrium at potential output?


A) The SRAS curve will shift to the left.
B) Real wages will fall shifting the SRAS curve to the right.
C) Either the money supply or government spending should be increased.
D) Either the money supply or government spending should be decreased.
E) Aggregate demand should be decreased.

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