If the Time Taken for an Economy to Self-Correct Is

question 157

Multiple Choice

If the time taken for an economy to self-correct is shorter than the active policy lags, then _____

• A) active policy will shift the short-run aggregate supply curve more than the aggregate demand curve.
• B) active policy is likely to destabilize the economy.
• C) time is required to accumulate evidence that the economy is performing below its potential.
• D) the aggregate demand curve will shift more rapidly than the short-run aggregate supply curve.
• E) active policy will work better than passive policy.

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Definitions:

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An introductory statement in communication that is non-committal and designed to lessen a negative reaction to the information that follows.