Which of the Following Statements Supports the Passive Approach to Close

question 135

Multiple Choice

Which of the following statements supports the passive approach to close a recessionary gap?

• A)It is likely that policies will be subject to time lags.
• B)Prolonged unemployment may cause the economy's potential real GDP to fall.
• C)Workers' skills may grow rusty during a prolonged recession.
• D)It is likely that unemployed workers will drop out of the labor force.
• E)Firms may neglect their capital stock during a prolonged recession.

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Definitions:

Self-Concept

An individual's perception of themselves, encompassing beliefs, feelings, and thoughts regarding one's abilities and attributes.

Competence

The ability of an individual to effectively perform or carry out a specific task.

Morality

Principles concerning the distinction between right and wrong or good and bad behavior, often influenced by cultural, religious, or personal beliefs.

Sociability

The tendency to seek social interactions and exhibit enjoyment in engaging with others.