Which of the Following Is Consistent with an Active Approach

question 17

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:

Observations

Data collected or measured during an experiment or survey. They are the individual values recorded during the statistical study.

Fair Die

An idealized die where each face has an equal probability of landing up, implying fairness and randomness in the outcome.

Expected Proportion

The predicted likelihood of an event occurring in a specific category or group.

Dependent

In statistics, referring to a variable that is assumed to depend on or be caused by another (independent) variable.