According to the Active Policy Approach, the Elimination of a Recessionary

question 22

Multiple Choice

According to the active policy approach, the elimination of a recessionary gap _____

• A) can only be achieved by decreasing wages.
• B) requires a public policy of wage and price controls.
• C) should be accomplished by stimulating aggregate demand.
• D) will increase unemployment.
• E) will cause a recession.

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Definitions:

Hammer

A tool typically used for pounding nails into, or extracting nails from, some other object. Generally features a handle and a heavy head.

Anvil

A heavy iron block typically used in metalworking upon which metal can be hammered and shaped.

Stirrup

A small U-shaped bone in the middle ear that transmits sound vibrations from the anvil to the cochlea. Alternatively, it refers to a device attached to the saddle in horse riding, supporting the rider's foot.

Frequency Theory

A theory in hearing that suggests the perception of pitch is related to the rate at which the entire basilar membrane vibrates, indicating that the frequency of the sound wave is mimicked by the firing rate of the auditory nerve.