Assume the Economy Is Operating at a Real GDP Above

question 90

Multiple Choice

Assume the economy is operating at a real GDP above full-employment real GDP. Classical economists would prescribe which of the following policies?

• A) Nonintervention
• B) Active monetary policy
• C) Contractionary
• D) Expansionary

---

Definitions:

Inbound Systems

Technologies or processes focused on managing incoming goods or information into an organization.

Exponential Smoothing

A forecasting technique that applies diminishing weights on past observations to predict future values, often used in inventory and sales forecasting.

Weighted Moving Average

A calculation that averages a set of numbers with emphasis given to certain values in the set.