Suppose Actual GDP Is $10 Billion Below Potential GDP

question 121

Multiple Choice

Suppose actual GDP is $10 billion below potential GDP.How can the economy achieve long-run equilibrium using a passive approach?  

• A) Policymakers can stimulate aggregate demand. 
• B) The short-run aggregate supply could shift outward. 
• C) The short-run aggregate supply curve could shift to the left. 
• D) Policymakers can reduce aggregate demand.