Suppose the Advice of Policymakers Who Favour a Passive Approach

question 84

Multiple Choice

Suppose the advice of policymakers who favour a passive approach to policy is correct.How would a recessionary gap eventually close?  

• A) The aggregate demand curve would shift rightward. 
• B) The aggregate demand curve would shift leftward. 
• C) The short-run aggregate supply curve would shift rightward. 
• D) The short-run aggregate supply curve would shift leftward.

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Definitions:

Whistle-blowing

The act of exposing any kind of information or activity that is deemed illegal, unethical, or not correct within an organization by an insider.

Social Responsibility Continuum

A range that depicts the varying degrees to which businesses may engage in acts intended to benefit society, from minimal to extensive involvement.

State Uncertainty

Refers to the inability to predict future states of the environment, making decision-making challenging due to unknown variables.

Environmental Forces

External factors such as social, economic, technological, competitive, and regulatory conditions that affect an organization's operations and outcomes.