If a Passive Approach Is Followed in Closing an Expansionary

question 134

Multiple Choice

If a passive approach is followed in closing an expansionary gap,_____.

• A)restrictive fiscal policy would be used
• B)restrictive monetary policy would be used
• C)the short-run aggregate supply curve would shift to the right
• D)the price level would decrease in the long run
• E)an economy would experience inflationary pressure

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Definitions:

American Shores

A term referring to the coastline of the United States, often symbolic of American identity and immigration history.

Francis Jennings

An American historian known for his work on the history of the interaction between Native Americans and Europeans in colonial America.

Widow

A woman whose spouse has died and who has not remarried.

Wilderness

Natural, undeveloped land areas remaining untouched by significant human activities, often valued for their ecological purity and beauty.