Active fiScal and Monetary Policy Is Required to Move an Economy

question 9

Multiple Choice

Active fiscal and monetary policy is required to move an economy back to equilibrium when:

• A) the pace of adjustment of prices and wages is sluggish.
• B) wages and prices are highly flexible.
• C) the long-run aggregate supply curve is upward sloping.
• D) the aggregate demand curve is vertical.

---

Definitions:

Behavior Therapies

The application of the principles of learning to direct efforts to change clients’ maladaptive behaviors.

Biomedical Therapies

Medical treatments for mental health disorders that involve medication, surgery, or other physiological interventions.

Alternative Therapies

Non-conventional methods used for treatment or health improvement, which are not based on traditional medical practices.

Psychiatrists

Medical doctors specializing in the diagnosis, treatment, and prevention of mental illnesses and disorders, often using both medication and therapy.