Which of the Following Might Be Effective in Bringing the Policy

question 15

Multiple Choice

Which of the following might be effective in bringing the policy frontier closer to the origin?

• A) Any policy option that could reduce the size and frequency of shocks to aggregate demand
• B) Any policy option that could reduce the size and frequency of shocks to potential GDP
• C) Any policy option that could reduce the size and frequency of shocks to aggregate supply
• D) Any policy option that could reduce the size and frequency of outside price shocks from materials, wages, government policy, or foreign markets
• E) All of the above

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