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Title: Which of the following is consistent with an active approach to policy? Post by: aslocke on Feb 27, 2018 Which of the following is consistent with an active approach to policy?
a. The natural rate of unemployment being uncertain b. Wages and prices being relatively quick to adjust c. The short-run aggregate supply curve being slow to shift in the presence of a recessionary gap d. The size of the multiplier being irrelevant e. The aggregate demand curve being slow to shift in the presence of a recessionary gap QUESTION 2 For those who favor an active approach, public policy changes are necessary to cure a recessionary gap because: a. the short-run aggregate supply curve will otherwise shift quickly to the right. b. prices and wages are flexible downward but not upward. c. the required decrease in output can be achieved only by shifting the aggregate demand curve. d. real wages must fall in order to increase aggregate supply in the economy. e. falling money wages will cause the AD curve to shift leftward unless policy counters this movement. QUESTION 3 According to the active policy approach, the elimination of a recessionary policy _____. a. can only be achieved by decreasing wages b. requires a public policy of wage and price controls c. should be accomplished by stimulating aggregate demand d. will increase unemployment e. will cause a recession QUESTION 4 If we observe an economy adjusting to potential GDP as prices fall and real output increases, we can conclude that _____. a. the economy was experiencing an expansionary gap b. there is a labor surplus c. the economy was experiencing a recessionary gap d. self-correction is not the process that is occurring e. there are widespread labor shortages QUESTION 5 The reason why self-correction works to close a recessionary gap is because: a. a labor shortage causes wages to increase. b. a labor surplus causes wages to increase. c. a labor shortage causes wages to fall. d. a labor surplus causes wages to fall. e. a labor surplus causes price to fall. QUESTION 6 Which of the following is not consistent with a self-correcting economy? a. Falling wages that correct a recessionary gap b. Falling prices that correct a recessionary gap c. Rising prices that correct an expansionary gap d. Tendency of the short-run aggregate supply to shift until it intersects aggregate demand at potential GDP e. An active approach to a recession or depression Title: Which of the following is consistent with an active approach to policy? Post by: B Briggs on Feb 27, 2018 Title: Which of the following is consistent with an active approach to policy? Post by: aslocke on Feb 27, 2018 What an awesome place to get free homework help
Title: Which of the following is consistent with an active approach to policy? Post by: B Briggs on Feb 27, 2018 What makes it awesome is that you posted, thanks for trusting us
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