Which of the Following Is Consistent with an Active Approach

question 59

Multiple Choice

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

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Definitions:

Physiological Dependence

A condition in which the body has adapted to the presence of a substance, leading to withdrawal symptoms when the substance is reduced or not used.

Heart Attacks

Medical emergencies that occur when the flow of blood to the heart is blocked, often by a blood clot, causing damage to heart muscle.

Psychological Dependence

A condition in which an individual feels compelled to continue using a substance due to emotional or psychological needs.

Mental Craving

A strong emotional or psychological desire or need, often for a specific substance or experience.