Some Economists Contend That a Policy of Shifting the Aggregate

question 36

Multiple Choice

Some economists contend that a policy of shifting the aggregate demand curve will be costly because it produces more volatility in both the price level and output.These economists likely are advocates of ________ policy.

• A)supply-side
• B)discretionary
• C)demand-management
• D)nondiscretionary

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Definitions:

Net Benefit

Net benefit refers to the total positive effects or advantages of a decision or action, minus any costs or negative effects associated with it.

Creative Destruction

A process where new innovations cause the demise of older industries or technologies, leading to economic growth and development.

Economic Recession

A period of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP in two successive quarters.

Automobile Production

is the series of processes involved in manufacturing automobiles, including assembly, painting, and quality control, among others.